The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2437636 • Letter: T
Question
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Also note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Record on page 11 of the journal
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
Income Summary
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
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Mar. 2 Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the goods sold was $13,300. 3 Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of the goods sold was $7,000. 4 Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of the goods sold was $33,200. 5 Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of the goods 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 the goods 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 the goods 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.Explanation / Answer
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Answer Page 10 Date Desc Post Ref Debit Credit Asset Liability Equity 1 Mar 02 Sale of goods (Wholesale)122
18900 Accounts Receivable-Equinox Co. 130 13300 Inventory 311 5600 Retained earning 2 Mar 03 Sale Of goods (Retail) 110 12031 Cash 218 681 Sale Tax Payable 130 7000 Inventory 311 4350 Retained Earning 3 Mar 04 Sale Of Goods (Whole Sale) 121 55400 Accounts Receivable-Empire Co. 130 33200 Inventory 311 22200 Retained Earning 4 Mar 05 Sale Of Goods 110 31800 Cash 218 1800 Sale Tax Payable 130 19400 Inventory 311 10600 Retained Earning 5 Mar 12 Check Received 110 18900 Cash 122 18900 Accounts Receivable-Equinox Co. 6 Mar 14 Sale of Goods 110 13700 Cash 130 8350 Inventory 311 5350 Retained Earning 7 Mar 16 Sale of Goods 123 27500 Accounts Receivable-Targhee Co. 130 16000 Inventory 311 11500 Retained Earnings 8 Mar 18 Return Of Goods 130 2900 Inventory 311 1900 Retained Earnings 123 4800 Accounts Receivable-Targhee Co.