Chapter C, Problem C.14E

Recording transactions-sales journal

Feb. 1	Sold merchandise inventory on account to Crisp Co., $1,325. Cost of goods, $870. Invoice no. 401.
6	Sold merchandise inventory for cash, $920 (cost, $660).
12	Collected interest revenue of $140.
15	Received cash from Crisp Co. in full settlement of its account receivable. There was no discount.
20	Sold merchandise inventory on account to Drummer Co., issuing invoice no. 402 for $500 (cost, $425).
22	Sold merchandise inventory for cash, $570 (cost $450).
26	Sold office supplies to an employee for cash of $1 80.
28	Received $480 from Drummer Co. in full settlement of its account receivable.

Drummer earned a discount by paying early. Terms are 4/10, n/15.

Requirements

1. 1. Prepare headings for a sales journal. Journalize the transactions that should be recorded in the sales journal. (Round the sales discount to a whole dollar.) Assume the company uses the perpetual inventory system.
2. 2. Total each column of the sales journal.