Question

Answer all please. Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

July 1.	Sold merchandise on account to Landscapes Co., $16,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,700.
2.	Sold merchandise for $24,300 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $15,800.
5.	Sold merchandise on account to Peacock Company, $35,700, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $23,200.
8.	Sold merchandise for $10,400 plus 5% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,200.
13.	Sold merchandise to customers who used MasterCard cards, $10,000. The cost of merchandise sold was $6,300.
14.	Sold merchandise on account to Loeb Co., $13,600, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,000.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100.
18.	Sold merchandise on account to Jennings Company, $7,300, terms FOB shipping point, 2/10, n/30. Paid $200 for freight and added it to the invoice. The cost of merchandise sold was $4,400.
24.	Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
28.	Received check for amount due from Jennings Company for sale of July 18.
31.	Paid Black Lab Delivery Service $1,830 for merchandise delivered during July to customers under shipping terms of FOB destination.
31.	Received check for amount due from Landscapes Co. for sale of July 1.
Aug. 3.	Paid Hays Federal Bank $870 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,550 to state sales tax division for taxes owed on sales.

1- Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

Date	Account	Debit	Credit
July 1-sale

Date	Account	Debit	Credit
July 1-cost

Date	Account	Debit	Credit
July 2-sale

Date	Account	Debit	Credit
July 2-cost

Date	Account	Debit	Credit
July 5-sale

Date	Account	Debit	Credit
July 5-cost

Date	Account	Debit	Credit
July 8-sale

Date	Account	Debit	Credit
July 8-cost

Date	Account	Debit	Credit
July 13-sale

Date	Account	Debit	Credit
July 13-cost

Date	Account	Debit	Credit
July 14-sale

Date	Account	Debit	Credit
July 14-cost

Date	Account	Debit	Credit
July 15

Date	Account	Debit	Credit
July 16-return

Date	Account	Debit	Credit
July 16-cost

Date	Account	Debit	Credit
July 18-sale

Date	Account	Debit	Credit
July 18-freight

Date	Account	Debit	Credit
July 18-cost

Date	Account	Debit	Credit
July 24

Date	Account	Debit	Credit
July 28

Date	Account	Debit	Credit
July 31-freight

Date	Account	Debit	Credit
July 31-collection

Date	Account	Debit	Credit
Aug. 3

Date	Account	Debit	Credit
Aug. 10

Answer 1

Answer -

Date	Account	Debit	Credit
July 01	Accounts receivable-Landscapes Co.	$16100
	Sales		$16100
July 01	Cost of merchandise sold	$9700
	Merchandise inventory		$9700
July 02	Cash	$26001
	Sales		$24300
	Sales tax payable		$1701
July 02	Cost of merchandise sold	$15800
	Merchandise inventory		$15800
July 05	Accounts receivable-Peacock Company	$35700
	Sales		$35700
July 05	Cost of merchandise sold	$23200
	Merchandise inventory		$23200
July 08	Cash	$10920
	Sales		$10400
	Sales tax payable		$520
July 08	Cost of merchandise sold	$6200
	Merchandise inventory		$6200
July 13	Cash	$10000
	Sales		$10000
July 13	Cost of merchandise sold	$6300
	Merchandise inventory		$6300
July 14	Accounts receivable-Loeb Co.	$13600
	Sales		$13600
July 14	Cost of merchandise sold	$8000
	Merchandise inventory		$8000
July 15	Cash	$35343
	Sales discounts	$357
	Accounts receivable-Peacock Company		$35700
July 16	Sales returns and allowances	$2000
	Accounts receivable-Loeb Co.		$2000
July 16	Cost of merchandise sold	$1100
	Merchandise inventory		$1100
July 18	Accounts receivable-Jennings Company	$7300
	Sales		$7300
July 18	Accounts receivable-Jennings Company	$200
	Cash		$200
July 18	Cost of merchandise sold	$4400
	Merchandise inventory		$4400
July 24	Cash	$11484
	Sales discounts	$116
	Accounts receivable-Loeb Co.		$11600
July 28	Cash	$7154
	Sales discounts	$146
	Accounts receivable-Jennings Company		$7300
July 31	Delivery expense	$1830
	Cash		$1830
July 31	Cash	$16100
	Accounts receivable-Landscapes Co.		$16100
Aug. 03	Credit card expense	$870
	Cash		$870
Aug. 10	Sales tax payable	$2550
	Cash		$2550

Calculation:

July 02:

1. Sales tax payable:

= Sales * Sales tax percentage

= $24300 * 7%

= $1701

2. Cash received:

= Sales + Sales tax payable

= $24300 + $1701

= $26001

July 08:

1. Sales tax payable:

= Sales * Sales tax percentage

= $10400 * 5%

= $520

2. Cash received:

= Sales + Sales tax payable

= $10400 + $520

= $10920

July 15:

Here, 1/10 n/30 means,

Discount = 1%

Discount period = 10 days

Due period = 30 days

So,

1. Sales discount:

= (Sales - Sales returns and allowance) * Discount percentage

= ($35700 - $0) * 1%

= $357

2. Cash received:

= Accounts receivable - Sales discount

= $35700 - $357

= $35343

July 24:

Here, 1/10 n/30 means,

Discount = 1%

Discount period = 10 days

Due period = 30 days

So,

1. Sales discount:

= (Sales - Sales returns and allowance) * Discount percentage

= ($13600 - $2000) * 1%

= $116

2. Cash received:

= Accounts receivable - Sales discount

= $11600 - $116

= $11484

July 28:

Here, 2/10 n/30 means,

Discount = 2%

Discount period = 10 days

Due period = 30 days

So,

1. Sales discount:

= (Sales - Sales returns and allowance) * Discount percentage

= ($7300 - $0) * 2%

= $146

2. Cash received:

= Accounts receivable - Sales discount

= $7300 - $146

= $7154