Instructions
Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system.
Answer:
July 3 Purchases 61,200
Freight In 1,450
Accounts Payable—Hamling Co. 62,650
[$72,000 – ($72,000 × 15%)] = $61,200.
5 Purchases 33,450
Accounts Payable—Kester Co. 33,450
6 Accounts Receivable—Parsley Co. 30,150
Sales 30,150
[$45,000 – ($45,000 × 33%)] = $30,150.
7 Accounts Payable—Kester Co. 6,850
Purchases Returns and Allowances 6,850
13 Accounts Payable—Hamling Co. 62,650
Cash 61,426
Purchases Discounts 1,224
15 Accounts Payable—Kester Co. 26,600
Cash 26,068
Purchases Discounts 532
16 Cash 29,547
Sales Discounts 603
Accounts Receivable—Parsley Co. 30,150
19 Cash 108,000
Sales 108,000
22 Accounts Receivable—Tabor Co. 16,650
Sales 16,650
23 Cash 91,200
Sales 91,200
28 Sales Returns and Allowances 3,600
Accounts Receivable—Tabor Co. 3,600
31 Credit Card Expense 1,650
Cash 1,650