Question

sales and purchase-related transactions using perpetual inventory system

es and purchase-related transactions using perpetual inventory system 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 entory system. Wuly 3. Purchased merchandise on account from Hamling Co., list price $85,000, trade discount 30%, terms FOB shipping point, 2/10, 1/30, with prepaid freight of $890 added to the invoice 5. Purchased merchandise on account from Kester Co., $47,750, terms FOB destination, 2/10, 1/30. 6. Sold merchandise an account to Parsley Co., $15,710, terms 1/15. The cost of the goods sold was $10,040. 7. Returned merchandise with an invoice amount of $11,200 purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Pald Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $254,490. The cost of the goods was $139,430. 22. Sold merchandise on account to Tabor Co., $55.000, terms 2/10, 1/30. The cost of the goods sold was $11,570. 23. Sold merchandise for cash, $34,650. The cost of the goods sold was $22.120. 28. Pald Parsley Co. a cash refund of $5,520 for returned merchandise from sale of July 6. The cost of the returned merchandise was $2,980. 31. Pald MasterCard service fee of $3,480. Required: ournalize the transactions. If an amount box does not require an entry, leave it blank, July 3 July 5 Check My Work 3 more Check My Work uses remaining Previous Next All work saved Email Instructor Save and Submit Assignment for Grading

Answer 1

Date	Account titles & Explanations					Debit	Credit
3-May	Merchandise inventory					59200
	Accounts payable-Hamling co						59200
	(85000*70%=		59500	)
	(59500*98%+890=		59200
5-May	Merchandise inventory					46,795
	Accounts payable -		Kester co				46,795
6-May	Accounts receivable		Parsley co			15,710
	Sales						15,710
	Cost of goods sold					10,040
	Merchandise inventory						10,040
7-May	Accounts payable -		kester co			10,976
	Merchandise inventory						10,976
13-May	Accounts payable-Hamling co					59200
	Cash						59200
15-May	Accounts payable-kester co					35,819
	Cash						35,819
21-May	Cash					15,710
	Accounts receivable		Parsley co				15,710
21-May	Cash					254,490
	Sales						254,490
	Cost of good sold					139,430
	Merchandise inventory						139,430
21-May	Accounts receivable		Tabor			53,900
	Sales						53,900
	Cost of goods sold					31,570
	Merchandise inventory						31,570
21-May	Cash					34,650
	Sales						34,650
	Cost of good sold					22,120
	Merchandise inventory						22,120
21-May	Customer refunds payable					5,520
	Cash						5,520
	Merchandise inventory					2,980
	Estimated returns inventory						2,980
31-May	Credit card expense					3,480
	cash						3,480