Sales-Related Transactions Using Perpetual Inventory System The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers: July 1. Sold merchandise on account to Landscapes Co., $15,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,200. 2. Sold merchandise for $23,100 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $15,000. 5. Sold merchandise on account to Peacock Company, $33,400, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,700. 8. Sold merchandise for $11,000 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,600. 13. Sold merchandise to customers who used MasterCard cards, $4,500. The cost of merchandise sold was $2,800. 14. Sold merchandise on account to Loeb Co., $13,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,000. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100. 18. Sold merchandise on account to Jennings Company, $6,900, terms FOB shipping point, 2/10, n/30. Paid $350 for freight and added it to the invoice. The cost of merchandise sold was $4,100. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16. 28. Received check for amount due from Jennings Company for sale of July 18. 31. Paid Black Lab Delivery Service $1,810 for merchandise delivered during July to customers under shipping terms of FOB destination. 31. Received check for amount due from Landscapes Co. for sale of July 1. Aug. 3. Paid Hays Federal Bank $800 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,480 to state sales tax division for taxes owed on sales. Required: Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Sales-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:

July 1. Sold merchandise on account to Landscapes Co., $15,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $9,200.
2. Sold merchandise for $23,100 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $15,000.
5. Sold merchandise on account to Peacock Company, $33,400, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $21,700.
8. Sold merchandise for $11,000 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,600.
13. Sold merchandise to customers who used MasterCard cards, $4,500. The cost of merchandise sold was $2,800.
14. Sold merchandise on account to Loeb Co., $13,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,000.
15. Received check for amount due from Peacock Company for sale on July 5.
16. Issued credit memo for $2,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,100.
18. Sold merchandise on account to Jennings Company, $6,900, terms FOB shipping point, 2/10, n/30. Paid $350 for freight and added it to the invoice. The cost of merchandise sold was $4,100.
24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
28. Received check for amount due from Jennings Company for sale of July 18.
31. Paid Black Lab Delivery Service $1,810 for merchandise delivered during July to customers under shipping terms of FOB destination.
31. Received check for amount due from Landscapes Co. for sale of July 1.
Aug. 3. Paid Hays Federal Bank $800 for service fees for handling MasterCard and VISA sales during July
10. Paid $2,480 to state sales tax division for taxes owed on sales.

Required:

Journalize the entries to record the transactions of Green Lawn Supplies Co. For a compound transaction, if no entry is required, leave the entry box blank.

Date Account Debit Credit
July 1-sale Accounts Receivable-Landscapes Co.     
  Sales     

 

Date Account Debit Credit
July 1-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 2-sale Cash     
  Sales     
  Sales Tax Payable     

 

Date Account Debit Credit
July 2-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 5-sale Accounts Receivable-Peacock Company     
  Sales     

 

Date Account Debit Credit
July 5-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 8-sale Cash     
  Sales     
  Sales Tax Payable     

 

Date Account Debit Credit
July 8-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 13-sale Cash     
  Sales     

 

Date Account Debit Credit
July 13-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 14-sale Accounts Receivable-Loeb Co.     
  Sales     

 

Date Account Debit Credit
July 14-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 15 Cash     
  Accounts Receivable-Peacock Company     

 

Date Account Debit Credit
July 16-return Customer Refunds Payable     
  Accounts Receivable-Loeb Co.     

 

Date Account Debit Credit
July 16-cost Merchandise Inventory     
  Estimated Returns Inventory     

 

Date Account Debit Credit
July 18-sale Accounts Receivable-Jennings Company     
  Sales     

 

Date Account Debit Credit
July 18-freight Accounts Receivable-Jennings Company     
  Cash     

 

Date Account Debit Credit
July 18-cost Cost of Merchandise Sold     
  Merchandise Inventory     

 

Date Account Debit Credit
July 24 Cash     
  Accounts Receivable-Loeb Co.     

 

Date Account Debit Credit
July 28 Cash     
  Accounts Receivable-Jennings Company     

 

Date Account Debit Credit
July 31-freight Delivery Expense     
  Cash     

 

Date Account Debit Credit
July 31-collection Cash     
  Accounts Receivable-Landscapes Co.     

 

Date Account Debit Credit
Aug. 3 Credit Card Expense     
  Cash     

 

Date Account Debit Credit
Aug. 10 Sales Tax Payable     
  Cash     
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