The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2463554 • 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.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles. Scroll down for page 11 of the journal.
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Mar. 2 Sold merchandise on account to Equinox Co., $19,100, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,470. 3 Sold merchandise for $11,000 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,260. 4 Sold merchandise on account to Empire Co., $50,410, terms FOB shipping point, n/eom. The cost of merchandise sold was $32,900. 5 Sold merchandise for $28,550 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,220. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $13,840. The cost of merchandise sold was $7,750. 16 Sold merchandise on account to Targhee Co., $25,900, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $17,180. 18 Issued credit memo for $4,400 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,030.Explanation / Answer
Journal entries:
Date Description Post Ref. Debit $ Credit $ Mar 2 Accounts Receivable 122 19100 Sales 19100 Cost of Merchandise 14470 Merchandise Inventory 130 14470 Mar 3 Accounts Receivable 11660 Sales 11660 Cost of Merchandise 7260 Merchandise Inventory 7260 Mar 4 Accounts Receivable 121 50410 Sales 50410 Cost of Merchandise 32900 Merchandise Inventory 32900 Mar 5 Accounts Receivable 30263 Sales 30263 Cost of Merchandise 18220 Merchandise Inventory 18220 Mar 12 Cash 110 18909 Cash discount 191 Accounts Receivable 122 19100 mar 14 Accounts Receivable 13840 Sales 13840 Cost of Merchandise 7750 Merchandise Inventory 7750 Mar 16 Accounts Receivable 123 25900 Sales 25900 Cost of Merchandise 17180 Merchandise Inventory 17180 Mar 18 Sales Return 4400 Accounts Receivable 123 4400 Merchandise Inventory 3030 Cost of Merchandise 3030 Mar 19 Accounts Receivable 124 8550 Sales 8550 Cost of Merchandise 5170 Merchandise Inventory 5170 Freight charges 65 Cash 110 65 Mar 26 Cash 110 21285 Cash discount 215 Accounts Receivable 123 21500 Mar 28 Cash 110 8379 Cash discount 171 Accounts Receivable 8550 Mar 31 CAsh 110 50410 Accounts Receivable 50410 Delivery Service Expense 6130 CAsh 110 6130 Apr 3 Bank Services Charges 950 Cash 110 950 Apr 15 Sales Tax Payable 218 5926 Cash 110 5926