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., $15,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,200. 2. Sold merchandise for $23,100 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $15,000. 5. Sold merchandise on account to Peacock Company, $33,400, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,700. 8. Sold merchandise for $11,000 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,600. 13. Sold merchandise to customers who used MasterCard cards, $4,500. The cost of merchandise sold was $2,800. 14. Sold merchandise on account to Loeb Co., $13,500, 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, $6,900, terms FOB shipping point, 2/10, n/30. Paid $350 for freight and added it to the invoice. The cost of merchandise sold was $4,100. 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 $1,810 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 $800 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,480 to state sales tax division for taxes owed on sales. Required: 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.

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., $15,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,200. 2. Sold merchandise for $23,100 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $15,000. 5. Sold merchandise on account to Peacock Company, $33,400, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,700. 8. Sold merchandise for $11,000 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,600. 13. Sold merchandise to customers who used MasterCard cards, $4,500. The cost of merchandise sold was $2,800. 14. Sold merchandise on account to Loeb Co., $13,500, 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, $6,900, terms FOB shipping point, 2/10, n/30. Paid $350 for freight and added it to the invoice. The cost of merchandise sold was $4,100. 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 $1,810 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 $800 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,480 to state sales tax division for taxes owed on sales. Required: 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.

Financial And Managerial Accounting

15th Edition

ISBN:9781337902663

Author:WARREN, Carl S.

Publisher:WARREN, Carl S.

Chapter5: Accounting For Retail Businesses

Section: Chapter Questions

Problem 34E

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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., $15,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,200.
2.	Sold merchandise for $23,100 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $15,000.
5.	Sold merchandise on account to Peacock Company, $33,400, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,700.
8.	Sold merchandise for $11,000 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,600.
13.	Sold merchandise to customers who used MasterCard cards, $4,500. The cost of merchandise sold was $2,800.
14.	Sold merchandise on account to Loeb Co., $13,500, 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, $6,900, terms FOB shipping point, 2/10, n/30. Paid $350 for freight and added it to the invoice. The cost of merchandise sold was $4,100.
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 $1,810 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 $800 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,480 to state sales tax division for taxes owed on sales.

Required:

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	Accounts Receivable-Landscapes Co.
	Sales

Date	Account	Debit	Credit
July 1-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 2-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
July 2-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 5-sale	Accounts Receivable-Peacock Company
	Sales

Date	Account	Debit	Credit
July 5-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 8-sale	Cash
	Sales
	Sales Tax Payable

Date	Account	Debit	Credit
July 8-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 13-sale	Cash
	Sales

Date	Account	Debit	Credit
July 13-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 14-sale	Accounts Receivable-Loeb Co.
	Sales

Date	Account	Debit	Credit
July 14-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 15	Cash
	Accounts Receivable-Peacock Company

Date	Account	Debit	Credit
July 16-return	Customer Refunds Payable
	Accounts Receivable-Loeb Co.

Date	Account	Debit	Credit
July 16-cost	Merchandise Inventory
	Estimated Returns Inventory

Date	Account	Debit	Credit
July 18-sale	Accounts Receivable-Jennings Company
	Sales

Date	Account	Debit	Credit
July 18-freight	Accounts Receivable-Jennings Company
	Cash

Date	Account	Debit	Credit
July 18-cost	Cost of Merchandise Sold
	Merchandise Inventory

Date	Account	Debit	Credit
July 24	Cash
	Accounts Receivable-Loeb Co.

Date	Account	Debit	Credit
July 28	Cash
	Accounts Receivable-Jennings Company

Date	Account	Debit	Credit
July 31-freight	Delivery Expense
	Cash

Date	Account	Debit	Credit
July 31-collection	Cash
	Accounts Receivable-Landscapes Co.

Date	Account	Debit	Credit
Aug. 3	Credit Card Expense
	Cash

Date	Account	Debit	Credit
Aug. 10	Sales Tax Payable
	Cash

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