July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.
5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., list price $45,000, trade discount 33%, terms 2/10, n/30. The cost of the merchandise sold was $25,000.
7. Returned $6,850 of merchandise purchased on July 5 from Kester Co.
13. Paid Hamling Co. on account for purchase of July 3, less discount.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7 and discount.
16. Received cash on account from sale of July 6 to Parsley Co., less discount.
19. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.
22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.
28. Received merchandise returned by Tabor Co. from sale on July 22, $3,600. The cost of the returned merchandise was $2,000.
31. Paid MasterCard service fee of $1,650.
Instructions
Journalize the transactions.
Answer:
July 3 Merchandise Inventory 62,650
Accounts Payable—Hamling Co. 62,650
[$72,000 – ($72,000 × 15%)] = $61,200.
$61,200 + $1,450 = $62,650.
5 Merchandise Inventory 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.
6 Cost of Merchandise Sold 25,000
Merchandise Inventory 25,000
7 Accounts Payable—Kester Co. 6,850
Merchandise Inventory 6,850
13 Accounts Payable—Hamling Co. 62,650
Cash 61,426
Merchandise Inventory 1,224
15 Accounts Payable—Kester Co. 26,600
Cash 26,068
Merchandise Inventory 532
16 Cash 29,547
Sales Discounts 603
Accounts Receivable—Parsley Co. 30,150
19 Cash 108,000
Sales 108,000
19 Cost of Merchandise Sold 64,800
Merchandise Inventory 64,800
22 Accounts Receivable—Tabor Co. 16,650
Sales 16,650
22 Cost of Merchandise Sold 10,000
Merchandise Inventory 10,000
July 23 Cash 91,200
Sales 91,200
23 Cost of Merchandise Sold 55,000
Merchandise Inventory 55,000
28 Sales Returns and Allowances 3,600
Accounts Receivable—Tabor Co. 3,600
28 Merchandise Inventory 2,000
Cost of Merchandise Sold 2,000
31 Credit Card Expense 1,650
Cash 1,650