Question

NUWV2U teaching Chapters 05 & 06 HW Sales and purchase-related transactions using perpetual Inventory system The following were selected from among the transactions completed by Essex Company during July of the current year. Essex uses the net method under a perpetual Inventory system. July 3. Purchased merchandise on account from Hamling Co., list price $79,000, trade discount 25%, terms FOB shipping point, 2/10, 1/30, with prepaid freight of $960 added to the invoice. 5. Purchased merchandise on account from Kester Co., $48,650, terms FOB destination, 2/10, 1/30. 6. Sold merchandise on account to Parsley Co., $16,290, terms 1/15. The cost of the goods sold was $9,050, 7. Returned merchandise with an invoice amount of $12,750 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3.. 15. Paid Kester Co, on account for purchase of July 5, less return of July 7 21. Received cash on account from sale July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $242,760. The cost of the goods sold was $139,430. 22. Sold merchandise on account to Tabor Co., $59,200, terms 2/10, 1/30. The cost of the goods sold was $34,080. 23. Sold merchandise for cash, $34,520. The cost of the goods sold was $24,480, 28. Paid Parsley Co. a cash refund of $5,850 for returned merchandise from sale of July 6. The cost of the returned merchandise was $3,430. 31. Paid MasterCard service fee of $3,220. Required: Journalize the transactions. If an amount box does not require an entry leave it blank

Answer 1

Date	Account titles & Explanations					Debit	Credit
3-Jul	Merchandise inventory					59025
	Accounts payable-Hamling co						59025
	(79000*75%=		59250	)
	(59250*98%+960=		59025
5-Jul	Merchandise inventory					47,677
	Accounts payable -		Kester co				47,677
6-Jul	Accounts receivable		Parsley co			16,290
	Sales						16,290
	Cost of goods sold					9,050
	Merchandise inventory						9,050
7-Jul	Accounts payable -		kester co			12,495
	Merchandise inventory						12,495
13-Jul	Accounts payable-Hamling co					59025
	Cash						59025
15-Jul	Accounts payable-kester co					35,182
	Cash						35,182
21-Jul	Cash					16,290
	Accounts receivable		Parsley co				16,290
21-Jul	Cash					242,760
	Sales						242,760
	Cost of good sold					139,430
	Merchandise inventory						139,430
22-Jul	Accounts receivable		Tabor			58,016
	Sales						58,016
	Cost of goods sold					34,080
	Merchandise inventory						34,080
23-Jul	Cash					34,520
	Sales						34,520
	Cost of good sold					24,480
	Merchandise inventory						24,480
28-Jul	Customer refunds payable					5,850
	Cash						5,850
	Merchandise inventory					3,430
	Estimated returns inventory						3,430
31-Jul	Credit card expense					3,220
	cash						3,220