I need help with with PR 6-1A and PR 6-2A. I just dont know if i got the right a
ID: 2420410 • Letter: I
Question
I need help with with PR 6-1A and PR 6-2A. I just dont know if i got the right answers.
Thank you
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers:
Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.
3. Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000.
4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.
5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.
12. Received check for amount due from Equinox Co. for sale on March 2.
14. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.
16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000.
18. Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
19. Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of merchandise sold was $5,000.
26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18 and discount.
28. Received check for amount due from Vista Co. for sale of March 19.
31. Received check for amount due from Empire Co. for sale of March 4.
31. Paid Fleetwood Delivery Service $5,600 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3. Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15. Paid $6,544 to state sales tax division for taxes owed on sales.
Instructions
Journalize the entries to record the transactions of Amsterdam Supply Co.
Explanation / Answer
1./
ACCOUNTS RECEIVABLE EQUINOX CO.A/C........................DR $18900
TO SALES A/C $18900
2./
CASH A/C.......................................................DR $12031
TO SALES A/C $11350
TO SALES TAX PAYBLE A/C $681
3./
ACCOUNTS RECEIVABLE EMPIRE CO.A/C........................DR $55400
TO SALES A/C $55400
4./
CASH A/C.......................................................DR $31800
TO SALES A/C $30000
TO SALES TAX PAYBLE A/C $1800
5./
CASH A/C....................................................................DR $18900
TO ACCOUNTS RECEIVABLE EQUINOX CO.A/C $18900
6./
CASH A/C.......................................................DR $13700
TO SALES A/C $13700
7./
ACCOUNTS RECEIVABLE TARGHEE CO.A/C........................DR $27500
TO SALES A/C $27500
8./
SALES RETURN & ALLOWANCE A/C...................................DR $4800
TO ACCOUNTS RECEIVABLE TARGHEE CO $4800
9./
ACCOUNTS RECEIVABLE VISTA CO. ................................DR $8325
TO SALES A/C $8250
TO FREIGHT A/C $75
10./
CASH A/C...........................................................DR $22473
DISCOUNT ON PAYMENT A/C............................DR $227
TO ACCOUNTS RECEIVABLE TARGHEE CO. $22700
11./
CASH A/C...........................................................DR $8160
DISCOUNT ON PAYMENT A/C............................DR $165
TO ACCOUNTS RECEIVABLE VISTA CO. $8325
12./
CASH A/C...........................................................DR $55400
TO ACCOUNTS RECEIVABLE EMPIRE CO. $55400
13./
DELIVERY SERVICE EXPENSES A/C................................DR $5600
TO CASH A/C $5600
14./
BANK CHARGES A/C...................................DR $940
TO CASH A/C $940
15./
SALES ATX PAYBLE A/C...........................DR $6544
TO CASH A/C $6544