This is the comprehensive problem 2 from ch 6 During July, the last month of the

Question

This is the comprehensive problem 2 from ch 6

During July, the last month of the fiscal year, the following transactions were completed July Paid rent for July, $4,000. Purchased merchandise on account from Lingard Co., terms 2/10. n/30. FOB shipping point. $25,000. Paul freight on purchase of July 3, $ 1,000. Sold merchandise on account to Holt Co., terms 2/10, n/30, FOB shipping point, $40,000. The cost of the merchandise sold was $24,000. Received $18,000 cash from Flatt Co, on account, no discount. Sold merchandise for cash $90,000. The cost of the merchandise sold was $50,000. Paid for merchandise purchased on July 3. Iess discount. Received merchandise returned on sale of July 6, $7,000. The cost of the merchandise returned was $4,500. Paid advertising expense for last half of July. $9,000. Received cash from sale of July 6. Iess return of July 14 and discount Purchased merchandise for cash, $22,000 Paid $23,100 to Carino Co. on account, no discount. Record the following transactions Page 21 of the journal. Sold merchandise on account to Reedley Co.. terms 1/10, n/30. FOB shipping point. $40,000. The cost of the merchandise sold was $25,000. For the convenience of the customer, paid freight on sale of July 20, $1,100. Received $17,600 cash from Owen Co. on account, no discount. Purchased merchandise on account from .Munson Co., terms 1/10, n/30, FOB destination, $32,000 July 24 Returned $5,000 of damaged merchandised purchased on July 21. receiving credit from the seller. Refunded cash on sales made for cash, $12.000. the cost of the merchandise returned was $7,200. Paid sales salaries of $22.H00 and office- salaries of $15,200. Purchased store supplies for cash, $2,400. Sold merchandise on account to Dix, Co,. terms 2/10. n/30. FOB shipping point. $18,750. The cost of the merchandise sold was $11,250. Received cash from sale of July 20. less discount. plus freight paid on July 21. Paid for purchase of July 21. less return of July 24 and discount.

Explanation / Answer

DR CR July 1 Rent Expense 4,000 Cash 4,000 July 3 Inventory 25,000 Accounts Payable 25,000 Freight In 1,000 Cash 1,000 July 6 Accounts Receivable 40,000 Sales 40,000 Cost of Goods Sold 24,000 Inventory 24,000 July 7 Cash 18,000 Accounts Receivable 18,000 Jul 10 Cash 90,000 Sales 90,000 Cost of Goods Sold 50,000 Inventory 50,000 Jul 13 Accounts Payable 25,000 Inventory (2% x 25000) 500 Cash 24,500 Jul 14 Sales Returns and Allowances 7,000 Account Receivable 7,000 Inventory 4,500 Cost of Goods Sold 4,500 Jul 15 Advertising Expenses 9,000 Cash 9,000 Jul 16 Cash 32,340 Sales Discount 660 Accounts Receivable 33,000 Jul 19 Inventory 22,000 Cash 22,000 Jul 19 Accounts Payable 23,100 Cash 23,100 Jul 21 Accounts Receivable 40,000 Sales 40,000 Cost of Goods Sold 25,000 Inventory 25,000 Jul 21 Freight Out 1,000 Cash 1,000 Jul 21 Cash 17,600 Accounts Receivable 17,600 Jul 21 Inventory 32,000 Accounts Payable 32,000 Jul 24 Accounts Payable 5,000 Inventory 5,000 Jul 26 Sales Returns and Allowances 12,000 Cash 12,000 Inventory 12,000 Cost of Goods Sold 12,000 Jul 28 Sales Salaries Expense 22,800 Office Salaries Expense 15,200 Cash 38,000 Jul 29 Store Supplies Expense 2,400 Cash 2,400 Jul 30 Accounts Receivable 18,750 Sales 18,750 Cost of Goods Sold 11,250 Inventory 11,250 Cash 40,600 Sales Discount 400 Freight Out 1,000 Accounts Receivable 40,000 Accounts Payable 27,000 Inventory 270 Cash 26,730

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