Sales-Related and Purchase-Related Transactions Using Periodic Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year: 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. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold 6. 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. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise 22. sold was $10,000. 23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000. 28. Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise. 31. Paid MasterCard service fee of $1,650. Required: Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system. If an amoun box does not require an entry, leave it blank.
Sales-Related and Purchase-Related Transactions Using Periodic Inventory System The following were selected from among the transactions completed by Essex Company during July of the current year: 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. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold 6. 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. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise 22. sold was $10,000. 23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000. 28. Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise. 31. Paid MasterCard service fee of $1,650. Required: Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system. If an amoun box does not require an entry, leave it blank.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:**Sales-Related and Purchase-Related Transactions Using Periodic Inventory System**
The following transactions were completed by Essex Company during July of the current year:
**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.
**July 5:**
- Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
**July 6:**
- Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000.
**July 7:**
- Returned $6,850 of merchandise purchased on July 5 from Kester Co.
**July 13:**
- Paid Hamling Co. on account for purchase of July 3.
**July 15:**
- Paid Kester Co. on account for purchase of July 5, less return of July 7.
**July 21:**
- Received cash on account from sale of July 6 to Parsley Co.
**July 22:**
- Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.
**July 23:**
- Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
**July 31:**
- Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.
- Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise.
- Paid MasterCard service fee of $1,650.
**Required:**
Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system. If an amount box does not require an entry, leave it blank.
**Entries:**
- **July 3:**
- Purchases
- Freight In
- Accounts Payable–Hamling Co.
- **July 5:**
- Purchases
- Accounts Payable–Kester Co.
- **July 6:**
- Accounts Receivable
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