2. Journalize the entries to record the transactions of Rayne Supplies Co. The following selected transactions were completed by Rayne Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: Aug 1 Sold merchandise on account to Tomahawk Co., P12,500, terms FOB ship- ping point, n/eom. The cost of merchandise sold was P7,500. 2 Sold merchandise for P20,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was P13,100. 5 Sold merchandise on account to Epworth Company, P30,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was P19,500. 8 Sold merchandise for P11,500 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was P7,000. 13 Sold merchandise to customers who used MasterCard cards, P8,000. The cost of merchandise sold was P5,000. 14 Sold merchandise on account to Osgood Co., P11,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was P7,000. 15 Received check for amount due from Epworth Company for sale on August 5. 16 Issued credit memo for P1,800 to Osgood Co. for merchandise returned from sale on August 14. The cost of the merchandise returned was P1,000. 18 Sold merchandise on account to Horton Company, P6,850, terms FOB shipping point, 2/10, n/30. Paid P210 for freight and added it to the invoice. The cost of merchandise sold was P4,100. 24 Received check for amount due from Osgood Co. for sale on August 14 less credit memo of August 16 and discount. 28 Received check for amount due from Horton Company for sale of August 18. 31 Paid Piper Delivery Service P2,100 for merchandise delivered during August to customers under shipping terms of FOB destination. 31 Received check for amount due from Tomahawk Co. for sale of August 1. Sept 3 Paid First Federal Bank P980 for service fees for handling MasterCard and VISA sales during August. 10 Paid P1,750 to state sales tax division for taxes owed on sales.
2. Journalize the entries to record the transactions of Rayne Supplies Co. The following selected transactions were completed by Rayne Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: Aug 1 Sold merchandise on account to Tomahawk Co., P12,500, terms FOB ship- ping point, n/eom. The cost of merchandise sold was P7,500. 2 Sold merchandise for P20,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was P13,100. 5 Sold merchandise on account to Epworth Company, P30,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was P19,500. 8 Sold merchandise for P11,500 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was P7,000. 13 Sold merchandise to customers who used MasterCard cards, P8,000. The cost of merchandise sold was P5,000. 14 Sold merchandise on account to Osgood Co., P11,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was P7,000. 15 Received check for amount due from Epworth Company for sale on August 5. 16 Issued credit memo for P1,800 to Osgood Co. for merchandise returned from sale on August 14. The cost of the merchandise returned was P1,000. 18 Sold merchandise on account to Horton Company, P6,850, terms FOB shipping point, 2/10, n/30. Paid P210 for freight and added it to the invoice. The cost of merchandise sold was P4,100. 24 Received check for amount due from Osgood Co. for sale on August 14 less credit memo of August 16 and discount. 28 Received check for amount due from Horton Company for sale of August 18. 31 Paid Piper Delivery Service P2,100 for merchandise delivered during August to customers under shipping terms of FOB destination. 31 Received check for amount due from Tomahawk Co. for sale of August 1. Sept 3 Paid First Federal Bank P980 for service fees for handling MasterCard and VISA sales during August. 10 Paid P1,750 to state sales tax division for taxes owed on sales.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:2. Journalize the entries to record the transactions of Rayne Supplies Co. The following selected transactions
were completed by Rayne Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally
to retail customers:
Aug 1 Sold merchandise on account to Tomahawk Co., P12,500, terms FOB ship- ping point, n/eom. The
cost of merchandise sold was P7,500.
2 Sold merchandise for P20,000 plus 7% sales tax to retail cash customers. The cost of merchandise
sold was P13,100.
5 Sold merchandise on account to Epworth Company, P30,000, terms FOB destination, 1/10, n/30.
The cost of merchandise sold was P19,500.
8 Sold merchandise for P11,500 plus 7% sales tax to retail customers who used VISA cards. The cost
of merchandise sold was P7,000.
13 Sold merchandise to customers who used MasterCard cards, P8,000. The cost of merchandise sold
was P5,000.
14 Sold merchandise on account to Osgood Co., P11,800, terms FOB shipping point, 1/10, n/30. The
cost of merchandise sold was P7,000.
15 Received check for amount due from Epworth Company for sale on August 5.
16 Issued credit memo for P1,800 to Osgood Co. for merchandise returned from sale on August 14.
The cost of the merchandise returned was P1,000.
18 Sold merchandise on account to Horton Company, P6,850, terms FOB shipping point, 2/10, n/30.
Paid P210 for freight and added it to the invoice. The cost of merchandise sold was P4,100.
24 Received check for amount due from Osgood Co. for sale on August 14 less credit memo of August
16 and discount.
28 Received check for amount due from Horton Company for sale of August 18.
31 Paid Piper Delivery Service P2,100 for merchandise delivered during August to customers under
shipping terms of FOB destination.
31 Received check for amount due from Tomahawk Co. for sale of August 1.
Sept 3 Paid First Federal Bank P980 for service fees for handling MasterCard and VISA sales during August.
10 Paid P1,750 to state sales tax division for taxes owed on sales.
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