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., $17,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $10,200. 2. Sold merchandise for $26,200 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $17,000. 5. Sold merchandise on account to Peacock Company, $35,900, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $23,300. 8. Sold merchandise for $8,400 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000. 13. Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500. 14. Sold merchandise on account to Loeb Co., $14,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,600. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,200 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200. 18. Sold merchandise on account to Jennings Company, $5,600, terms FOB shipping point, 2/10, n/30. Paid $280 for freight and added it to the invoice. The cost of merchandise sold was $3,400. 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 $2,260 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 $890 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,280 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 Date Account Debit Credit July 2-cost Date Account Debit Credit July 5-sale Date Account Debit Credit July 5-cost Date Account Debit Credit July 8-sale Date Account Debit Credit July 8-cost Date Account Debit Credit July 13-sale Date Account Debit Credit July 13-cost Date Account Debit Credit July 14-sale Date Account Debit Credit July 14-cost Date Account Debit Credit July 15 Date Account Debit Credit July 16-return Date Account Debit Credit July 16-cost Date Account Debit Credit July 18-sale Date Account Debit Credit July 18-freight Date Account Debit Credit July 18-cost Date Account Debit Credit July 24 Date Account Debit Credit July 28 Date Account Debit Credit July 31-freight Date Account Debit Credit July 31-collection Date Account Debit Credit Aug. 3 Date Account Debit Credit Aug. 10

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., $17,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $10,200. 2. Sold merchandise for $26,200 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $17,000. 5. Sold merchandise on account to Peacock Company, $35,900, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $23,300. 8. Sold merchandise for $8,400 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000. 13. Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500. 14. Sold merchandise on account to Loeb Co., $14,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,600. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,200 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200. 18. Sold merchandise on account to Jennings Company, $5,600, terms FOB shipping point, 2/10, n/30. Paid $280 for freight and added it to the invoice. The cost of merchandise sold was $3,400. 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 $2,260 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 $890 for service fees for handling MasterCard and VISA sales during July 10. Paid $2,280 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 Date Account Debit Credit July 2-cost Date Account Debit Credit July 5-sale Date Account Debit Credit July 5-cost Date Account Debit Credit July 8-sale Date Account Debit Credit July 8-cost Date Account Debit Credit July 13-sale Date Account Debit Credit July 13-cost Date Account Debit Credit July 14-sale Date Account Debit Credit July 14-cost Date Account Debit Credit July 15 Date Account Debit Credit July 16-return Date Account Debit Credit July 16-cost Date Account Debit Credit July 18-sale Date Account Debit Credit July 18-freight Date Account Debit Credit July 18-cost Date Account Debit Credit July 24 Date Account Debit Credit July 28 Date Account Debit Credit July 31-freight Date Account Debit Credit July 31-collection Date Account Debit Credit Aug. 3 Date Account Debit Credit Aug. 10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

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., $17,000, terms FOB shipping point, n/eom. The cost of merchandise sold was $10,200.
2.	Sold merchandise for $26,200 plus 5% sales tax to retail cash customers. The cost of merchandise sold was $17,000.
5.	Sold merchandise on account to Peacock Company, $35,900, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $23,300.
8.	Sold merchandise for $8,400 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $5,000.
13.	Sold merchandise to customers who used MasterCard cards, $5,500. The cost of merchandise sold was $3,500.
14.	Sold merchandise on account to Loeb Co., $14,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,600.
15.	Received check for amount due from Peacock Company for sale on July 5.
16.	Issued credit memo for $2,200 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,200.
18.	Sold merchandise on account to Jennings Company, $5,600, terms FOB shipping point, 2/10, n/30. Paid $280 for freight and added it to the invoice. The cost of merchandise sold was $3,400.
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 $2,260 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 $890 for service fees for handling MasterCard and VISA sales during July
10.	Paid $2,280 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

Date	Account	Debit	Credit
July 2-cost

Date	Account	Debit	Credit
July 5-sale

Date	Account	Debit	Credit
July 5-cost

Date	Account	Debit	Credit
July 8-sale

Date	Account	Debit	Credit
July 8-cost

Date	Account	Debit	Credit
July 13-sale

Date	Account	Debit	Credit
July 13-cost

Date	Account	Debit	Credit
July 14-sale

Date	Account	Debit	Credit
July 14-cost

Date	Account	Debit	Credit
July 15

Date	Account	Debit	Credit
July 16-return

Date	Account	Debit	Credit
July 16-cost

Date	Account	Debit	Credit
July 18-sale

Date	Account	Debit	Credit
July 18-freight

Date	Account	Debit	Credit
July 18-cost

Date	Account	Debit	Credit
July 24

Date	Account	Debit	Credit
July 28

Date	Account	Debit	Credit
July 31-freight

Date	Account	Debit	Credit
July 31-collection

Date	Account	Debit	Credit
Aug. 3

Date	Account	Debit	Credit
Aug. 10

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