Question

Problem (15 points): Presented here are selected transactions for the Martine Company during July. Martine uses the perpetual inventory system. July 1 Sold merchandise to Home Company for $1,000, terms 2/10, 1/30. The merchandise sold had a cost of $500. Purchased merchandise from Sams Corporation for $4,000, terms 1/10, 130. Purchased merchandise from Ryan Company for $5,000, 1/30. 10 Received payment from Home Company for purchase of July 1 less appropriate discount. 11 Paid Sams Corporation for July 2 purchase. Instructions: Journalize the July Transactions for Martine Company. Date Account Title Dr.

Answer 1

Solution Deb Credit 1 Date July 1 Debit $9801 Account Title Accounts Receivable | Sales Revenue ($1,000 x (1-02)) (To record sales on account, terms 2/10, n/30) 001 $980 2 July 1 $500l Cost of merchandise sold Merchandise Inventory (To record cost of merchandise sold) $500 3 July 2 $3,960 Merchandise Inventory ($4,000 x (1-.01)) | Accounts Payable (To record purchases on account, terms 1/10, n/30) $3,960 July 4 $5,000 Merchandise Inventory Accounts Payable (To record purchases on account, terms n/30) $5,000 5 July 10 $980 Cash Accounts Receivables (To record collection on accounts) $980 July 11 $3.960 Accounts Payable Cash (To record payment on account) $3,960