Question

PR 6-2A Sales-related transactions using perpetual inventory system The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, OBJ. 2 3. sold merchandise for $11,350 plus 6% sales tax to retail cash customers. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, 5. sold merchandise for $30,000 plus 6% sales tax to retail customers who used 1/10, n/30. The cost of the merchandise sold was $13,300. The cost of merchandise sold was $7,000. n/eom. The cost of merchandise sold was $33,200. MasterCard. The cost of merchandise sold was $19,40. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $13,700 16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping 18. Issued credit memo for $4,800 to Targhee Co. for merchandise returned from 19. Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, The cost of merchandise sold was $8,350. point, 1/10, n/30. The cost of merchandise sold was $16,000. sale on March 16. The cost of the merchandise returned was $2,900. 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of merchan- dise sold was $5,000 26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18

Answer 1

Ans- Journal Entries

Date	Description	Debit ($)	Credit ($)
Mar.2	Accounts receivable- Equinox Co.	18,900
	Sales		18,900
	(To record the merchandise sold to Equinox Co.)
Mar.2	Cost of merchandise sold	13,300
	Merchandise inventory		13,300
	(To record the cost of merchandise sold)
Mar.3	Cash	12,031
	Sales		11,350
	Sales tax payable ($11,350*6%)		681
	(To record the merchandise sold to a customer)
Mar.3	Cost of merchandise sold	7,000
	Merchandise inventory		7,000
	(To record the cost of merchandise sold)
Mar.4	Accounts receivable-Empire company	55,400
	Sales		55,400
	(To record the merchandise sold to Empire company)
Mar.4	Cost of merchandise sold	33,200
	Merchandise inventory		33,200
	(To record the cost of merchandise sold)
Mar.5	Cash	31,800
	Sales		30,000
	Sales tax payable ($30,000*6%)		1,800
	(To record the merchandise sold to retail customer)
Mar.5	Cost of merchandise sold	19,400
	Merchandise Inventory		19,400
	(To record the cost of merchandise sold)
Mar.12	Cash	18,711
	Sales discount	189
	Accounts receivable-Equinox Co.		18,900
	(To record the check received from Equinox company)
Mar.14	Cash	13,700
	Sales		13,700
	(To record the merchandise sold)
Mar.14	Cost of merchandise sold	8,350
	Merchandise inventory		8,350
	(To record the cost of merchandise sold)
Mar.16	Accounts receivable- Targhee company	27,500
	Sales		27,500
	(To record the merchandise sold to Targhee company)
Mar.16	Cost of merchandise sold	16,000
	Merchandise inventory		16,000
	(To record the cost of merchandise sold)
Mar.18	Sales returns	4,800
	Accounts receivable- Targhee company		4,800
	(To record the issue of credit memo)
Mar.18	Merchandise inventory	2,900
	Cost of goods sold		2,900
	(To record the cost of merchandise returned)
Mar.19	Accounts receivable - Vista company	8,250
	Sales		8,250
	(To record the merchandise sold)
Mar.19	Cost of merchandise sold	5,000
	Merchandise inventory		5,000
	(To record the cost of merchandise sold)
Mar.19	Accounts receivable- Vista company	75
	Cash		75
	(To record the freight cost paid and to be collected from vista company)
Mar.26	Cash ($27,500-$4,800=$22,700-$227)	22,473
	Sales discount ($22,700*1%)	227
	Accounts Receivable- Targhee company		22,700
	(To record the check received from targhee company)
Mar.28	Cash	8,085
	Sales discount ($8,250*2%)	165
	Accounts receivable-Vista company		8,250
	(To record the check received from Vista company)
Mar.31	Cash	55,400
	Accounts receivable- Empire company		55,400
	(To record the check received from Empire company)
Mar.31	Deliver expense	5,600
	Cash		5,600
	(To record the delivery expense paid)
Apr.3	Credit card expense	940
	Cash		940
	(To record the service fee paid)
Apr.15	Sales tax payable	6,544
	Cash		6,544
	(To record the sales tax paid)

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