The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2464542 • 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.
Mar. 2 Sold merchandise on account to Equinox Co., $20,000, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,150. 3 Sold merchandise for $10,950 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,100. 4 Sold merchandise on account to Empire Co., $51,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $35,420. 5 Sold merchandise for $27,900 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $18,470. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $12,380. The cost of merchandise sold was $9,120. 16 Sold merchandise on account to Targhee Co., $28,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $14,690. 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 $2,910.Explanation / Answer
Journal Entries Debit Credit $ $ Mar 2 Account receivable 20000 To Sales 20000 Cost of goods sold 13150 TO FG inventory 13150 Mar 3 Account receivable 11607 To Sales 10950 To Sales Tax Payable 657 Cost of goods sold 7100 TO FG inventory 7100 Mar 4 Account receivable 51450 To Sales 51450 Cost of goods sold 35420 TO FG inventory 35420 Mar 5 Bank A/c- Card Receivable 29574 To Sales 27900 To Sales Tax Payable 1674 Cost of goods sold 18470 TO FG inventory 18470 Mar 12 Bank A/c 20000 To Account receivable 20000 Mar 14 Bank A/c- Card Receivable 12380 To Sales 12380 Cost of goods sold 9120 TO FG inventory 9120 Mar 16 Account receivable 28500 To Sales 28500 Cost of goods sold 14690 TO FG inventory 14690 Mar 18 Sales Return 4400 To Account Receivable 4400 FG Inventory 2910 TO Cost of goods sold 2910 Mar 19 Account receivable 7400 To Sales 7400 Cost of goods sold 4630 TO FG inventory 4630 Freight 55 To Bank 55 Account receivable 55 To Freight 55 Mar 26 Bank A/c 24100 To Account receivable 24100 Mar 28 Bank A/c 7455 To Account receivable 7455 Mar 31 Bank A/c 51450 To Account receivable 51450 Freight 5100 To Bank A/c 5100 Apr 3 Bank Charges 850 To Bank A/c 850 Apr 15 Sales tax payable 6212 to Bank 6212