The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2445003 • 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:
Record on page 10 of the journal Mar. 2 Sold merchandise on account to Equinox Co., $19,300, terms FOB destination, 1/10, n/30.
The cost of the merchandise sold was $14,120.
3 Sold merchandise for $12,200 plus 6% sales tax to retail cash customers.
The cost of merchandise sold was $6,930.
4 Sold merchandise on account to Empire Co., $58,930, terms FOB shipping point, n/eom.
The cost of merchandise sold was $32,340. 5 Sold merchandise for $30,400 plus 6% sales tax to retail customers who used MasterCard.
The cost of merchandise sold was $20,610.
12 Received check for amount due from Equinox Co. for sale on March 2.
14 Sold merchandise to customers who used American Express cards, $15,040.
The cost of merchandise sold was $7,570.
16 Sold merchandise on account to Targhee Co., $29,900, terms FOB shipping point, 1/10, n/30.
The cost of merchandise sold was $17,360.
18 Issued credit memo for $4,900 to Targhee Co. for merchandise returned from sale on March 16.
The cost of the merchandise returned was $2,670.
Record on page 11 of the journal 19 Sold merchandise on account to Vista Co., $8,150, terms FOB shipping point, 2/10, n/30. Added $65 to the invoice for prepaid freight.
The cost of merchandise sold was $4,850. 26 Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
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 $5,470 for merchandise delivered during March to customers under shipping terms of FOB destination.
Apr. 3 Paid City Bank $830 for service fees for handling MasterCard and American Express sales during March. 15 Paid $6,048 to state sales tax division for taxes owed on sales.
Explanation / Answer
Amsterdam Supply Co. Journal entries Page Date Account Details Sub ledger Details Dr $ Cr $ Term 10 Mar 2. Accounts Receivable Equinox co 19,300 1/10,n/30 Sales Revenue 19,300 Cost of Merchandise 14,120 Stock of Merchandise 14,120 Mar 3. Cash 12,932 Sales Revenue 12,200 Sales Tax Payable 732 Cost of Merchandise 6,930 Stock of Merchandise 6,930 Mar 4. Accounts Receivable Empire Co 58,930 n/eom Sales Revenue 58,930 Cost of Merchandise 32,340 Stock of Merchandise 32,340 Mar 5. Cash 32,224 Sales Revenue 30,400 Sales Tax Payable 1,824 Cost of Merchandise 20,610 Stock of Merchandise 20,610 Mar 12. Accounts Receivable Equinox co 19,300 Sales Discount 193 Cash 19,107 Mar 14. Cash 15,040 Sales Revenue 15,040 Cost of Merchandise 7,570 Stock of Merchandise 7,570 Mar 16, Accounts Receivable Targhee & Co 29,900 1/10,n/30 Sales Revenue 29,900 Cost of Merchandise 17,360 Stock of Merchandise 17,360 Mar 18. Accounts Receivable Targhee & Co 4,900 Sales Return 4,900 Cost of Merchandise 2,670 Stock of Merchandise 2,670 11 Mar 19. Accounts Receivable Vista Co 8,150 2/10,n/30 Sales Revenue 8,150 Cost of Merchandise 4,820 Stock of Merchandise 4,820 Accounts Receivable-Freight 65 Cash 65 Cost of Merchandise 4,850 Stock of Merchandise 4,850 Mar 26. Accounts Receivable Targhee & Co 25,000 Sales Discount 250 Cash 24,750 Mar 28. Accounts Receivable Vista Co 8,150 Sales Discount 163 Cash 7,987 Mar 31, Accounts Receivable Empire Co 58,930 Cash 58,930 Freight -Out 5,470 Cash 5,470 Service fees _credit card sales 830 Cash 830 Sales tax payable 6,048 Cash 6,048