Homework help PR 6-2B
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., $33,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $20,000.
July 2 Sold merchandise for $86,000 plus 8% sales tax to retail cash customers. The cost of merchandise sold was $51,600.
July 5 Sold merchandise on account to Peacock Company, $17,500, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $10,000
July 8 Sold merchandise for $112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $67,200
July 13 Sold merchandise to customers who used MasterCard cards, $96,000. The cost of merchandise sold was $57,600.
July 14 Sold merchandise on account to Loeb Co., $16,000, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $9,000
July 15 Received check for amount due from Peacock Company for sale on July 5
July 16 Issued credit memo for $3,000 to Loeb Co. for merchandise returned from sale on July 14. The cost of the merchandise returned was $1,800
July 18 Sold merchandise on account to Jennings Company, $11,350, terms FOB shipping point, 2/10, n/30. Paid $475 for freight and added it to the invoice. The cost of merchandise sold was $6,800
July 24 Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16
July 28 Received check for amount due from Jennings Company for sale of July 18
July 31 Paid Black Lab Delivery Service $8,550 for delivery of merchandise in July to customers under shipping terms of FOB destination
July 31 Received check for amount due from Landscapes Co. for sale of July 1
August 3 Paid Hays Federal Bank $3,770 for service fees for handling MasterCard and VISA sales during July.
August 10 Paid $41,260 to state sales tax division for taxes owed on sales
Instructions Journalize the entries to record the transactions of Green Lawn Supplies Co.
