Question

ide the t Print the text assignment PR S-2A Sales office supplicsd tras Inven Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, -related transactions using perpetual Inventory system Amsterdam Supply Co., which sells leted by ly to wholesalers and occasionally to retail customers: To The following selected transactions were comp 1/10, n/30. The cost of the merchandise sold was $13,300. 3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. 5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400. 12. Reccived check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $13,700 The cost of merchandise sold was $8,350. 16 Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000. 18. Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900. 19. Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 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. Mar. 28. Received check for amount due from Vista Co. for sale of March 19. 31. Received check for amount due from Empire Co. for sale of March 4 31. Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination. Apr. 3. Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March. 15. Paid $6,544 to state sales tax division for taxes owed on sales. Instructions Journalize the entries to record the transactions of Amsterdam Supply Co

Answer 1

A	B	C	D	E	F	G	H	I
2		Increase in assets and expenses are debited while increase in liabilities are credited.
3		Credit term 1/10, n/30 means there will be discount of 1% if amount is paid within 10 days,
4		and the total amount is to be paid in 30 days.
5		Journal entries will be as follows:
6		Date	Account	Debit	Credit
7		2-Mar	Accounts Receivable	$18,900
8			Sales Revenue		$18,900
9
10			Cost of goods Sold	$13,300
11			Inventory		$13,300
12
13		3-Mar	Cash	$12,031
14			Sales Revenue		$11,350
15			Sales tax liability		$681
16
17			Cost of goods Sold	$7,000
18			Inventory		$7,000
19
20		4-Mar	Accounts Receivable	$55,400
21			Sales Revenue		$55,400
22
23			Cost of goods Sold	$33,200
24			Inventory		$33,200
25
26		5-Mar	Cash	$31,800
27			Sales Revenue		$30,000
28			Sales tax liability		$1,800
29
30			Cost of goods Sold	$19,400
31			Inventory		$19,400
32
33		12-Mar	Cash	$18,711
34			Sales Discount (1%)	$189		=F35*1%
35			Accounts Receivable		$18,900
36
37		14-Mar	Cash	$13,700
38			Sales Revenue		$13,700
39
40			Cost of goods Sold	$8,350
41			Inventory		$8,350
42
43		16-Mar	Accounts Receivable	$27,500
44			Sales Revenue		$27,500
45
46			Cost of goods Sold	$16,000
47			Inventory		$16,000
48
49		18-Mar	Sales return and Allowances	$4,800
50			Accounts Receivable		$4,800
51
52			Cost of merchandise sold	$2,900
53			Inventory		$2,900
54
55		19-Mar	Accounts Receivable	$8,325
56			Sales Revenue		$8,250
57			Outward Freight		$75
58
59			Cost of merchandise sold	$5,000
60			Inventory		$5,000
61
62		26-Mar	Cash	$22,473
63			Sales Discount (1%)	$227		=F64*1%
64			Accounts Receivable		$22,700	=E43-F50
65
66		28-Mar	Cash	$8,242
67			Sales Discount (1%)	$83
68			Accounts Receivable		$8,325
69
70		31-Mar	Cash	$55,400
71			Accounts Receivable		$55,400
72
73		31-Mar	Freight out	$5,600
74			Cash		$5,600
75
76		3-Apr	Bank Service Fee	$940
77			Cash		$940
78
79		15-Apr	Sales Tax liabilities	$6,544
80			Cash		$6,544
81
82