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., $11,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $6,700. 2. Sold merchandise for $28,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $18,200. 5. Sold merchandise on account to Peacock Company, $35,700, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $23,200. 8. Sold merchandise for $10,600 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,400. 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., $13,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,100. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,100 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, $6,500, terms FOB shipping point, 2/10, n/30. Paid $300 for freight and added it to the invoice. The cost of merchandise sold was $3,900. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
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., $11,100, terms FOB shipping point, n/eom. The cost of merchandise sold was $6,700. 2. Sold merchandise for $28,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $18,200. 5. Sold merchandise on account to Peacock Company, $35,700, terms FOB destination, 2/10, n/30. The cost of merchandise sold was $23,200. 8. Sold merchandise for $10,600 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $6,400. 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., $13,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $8,100. 15. Received check for amount due from Peacock Company for sale on July 5. 16. Issued credit memo for $2,100 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, $6,500, terms FOB shipping point, 2/10, n/30. Paid $300 for freight and added it to the invoice. The cost of merchandise sold was $3,900. 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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 $1,520 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 $1,090 for service fees for handling MasterCard and VISA sales during July
10. Paid $3,230 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
July 1-sale
Date
July 1-cost
Account
Account
Debit
Debit
Credit
Credit
Transcribed Image Text: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., $11,100, terms FOB shipping point, n/eom. The cost of merchandise
sold was $6,700.
2. Sold merchandise for $28,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $18,200.
5. Sold merchandise on account to Peacock Company, $35,700, terms FOB destination, 2/10, n/30. The cost of
merchandise sold was $23,200.
8. Sold merchandise for $10,600 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise
sold was $6,400.
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., $13,700, terms FOB shipping point, 1/10, n/30. The cost of merchandise
sold was $8,100.
15. Received check for amount due from Peacock Company for sale on July 5.
16. Issued credit memo for $2,100 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, $6,500, terms FOB shipping point, 2/10, n/30. Paid $300 for
freight and added it to the invoice. The cost of merchandise sold was $3,900.
24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
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