Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: May 1. Received $2,156 cash from L. Reilly in payment of April 22 invoice of $2,200, less cash discount. May 4. Received $1,096 cash in payment of $1,000 note receivable and interest of $96.  May 7. Received $588 cash from K.L. Shannon in payment of April 29 invoice of $600, less cash discount.  May 8. Sold merchandise on account to D. Padilla, invoice no. 272, $489. May 16. Cash sales for first half of May, $2,265. May 17. Received cash from D. Padilla in payment of invoice no. 272, less cash discount. May 20. Received $325 cash from L.N. Salas in payment of April 16 invoice, no discount. May 21. Sold merchandise on account to R.O. Wilcox, invoice no. 273, $935. May 24. Received $220 cash refund for return of defective equipment that was originally bought for cash. May 27. Sold merchandise on account to R. Javis, invoice no. 274, $450. May 31. Cash sales for second half of May, $2,845. Required: 1. Journalize the transactions for May in cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals and prove the equality of the debit and credit totals.

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Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year:

May 1. Received $2,156 cash from L. Reilly in payment of April 22 invoice of $2,200, less cash discount.

May 4. Received $1,096 cash in payment of $1,000 note receivable and interest of $96. 

May 7. Received $588 cash from K.L. Shannon in payment of April 29 invoice of $600, less cash discount. 

May 8. Sold merchandise on account to D. Padilla, invoice no. 272, $489.

May 16. Cash sales for first half of May, $2,265.

May 17. Received cash from D. Padilla in payment of invoice no. 272, less cash discount.

May 20. Received $325 cash from L.N. Salas in payment of April 16 invoice, no discount.

May 21. Sold merchandise on account to R.O. Wilcox, invoice no. 273, $935.

May 24. Received $220 cash refund for return of defective equipment that was originally bought for cash.

May 27. Sold merchandise on account to R. Javis, invoice no. 274, $450.

May 31. Cash sales for second half of May, $2,845.

Required:

1. Journalize the transactions for May in cash receipts journal and the sales journal. Assume the periodic inventory method is used.

2. If you are using Working Papers, total and rule the journals and prove the equality of the debit and credit totals.

PROBLEM 10-2A Preston Company sells candy wholesale, primarily to vending
machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The
following transactions involving cash receipts and sales of merchandise took place in
May of this year:
1 Received $2,156 cash from L. Reilly in payment of April 22 invoice of $2,200,
less cash discount.
May 1
4 Received $1,096 cash in payment of $1,000 note receivable and interest of $96.
7 Received $588 cash from K. L. Shannon in payment of April 29 invoice of
$600, less cash discount.
8 Sold merchandise on account to D. Padilla, invoice no. 272, $489.
Cash sales for first half of May, $2,265.
Received cash from D. Padilla in payment of invoice no. 272, less cash
16
17
discount.
Received $325 cash from L. N. Salas in payment of April 16 invoice, no
discount.
Sold merchandise on account to R. O. Wilcox, invoice no. 273, $935.
Received $220 cash refund for return of defective equipment that was
21
24
originally bought for cash.
27 Sold merchandise on account to R. Jarvis, invoice no. 274, $450.
Cash sales for second half of May, $2,845.
31
Required
1. Journalize the transactions for May in the cash receipts journal and the sales
journal. Assume the periodic inventory method is used.
2. If you are using Working Papers, total and rule the journals and prove the equality
of the debit and credit totals.
20
Transcribed Image Text:PROBLEM 10-2A Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: 1 Received $2,156 cash from L. Reilly in payment of April 22 invoice of $2,200, less cash discount. May 1 4 Received $1,096 cash in payment of $1,000 note receivable and interest of $96. 7 Received $588 cash from K. L. Shannon in payment of April 29 invoice of $600, less cash discount. 8 Sold merchandise on account to D. Padilla, invoice no. 272, $489. Cash sales for first half of May, $2,265. Received cash from D. Padilla in payment of invoice no. 272, less cash 16 17 discount. Received $325 cash from L. N. Salas in payment of April 16 invoice, no discount. Sold merchandise on account to R. O. Wilcox, invoice no. 273, $935. Received $220 cash refund for return of defective equipment that was 21 24 originally bought for cash. 27 Sold merchandise on account to R. Jarvis, invoice no. 274, $450. Cash sales for second half of May, $2,845. 31 Required 1. Journalize the transactions for May in the cash receipts journal and the sales journal. Assume the periodic inventory method is used. 2. If you are using Working Papers, total and rule the journals and prove the equality of the debit and credit totals. 20
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