GL0701 - Based on Problem 7-1A LO P1 Sanchez Company completes these transaction

Question

GL0701 - Based on Problem 7-1A LO P1

Sanchez Company completes these transactions and events during March of the current year (terms for all its credit sales are 2/10, n/30).

Cash sales for the last half of the month are $31,500 (cost is $18,900).

Each transaction is recorded in either a special journal, or directly in the general journal.  If a transaction is to be recorded in a special journal, select "Entered in special journal" in the first account field. Otherwise, prepare the general journal entry.

Mar. 1 Purchased $45,300 of merchandise from Lee Industries, invoice dated March 1, terms 2/15, n/30. Mar. 2 Sold merchandise on credit to Gonzalez Co., Invoice No. 854, for $37,200 (cost is $22,000). Mar. 3 Purchased $1,300 of office supplies on credit from Walker Company, invoice dated March 3, terms n/10 EOM. Mar. 3 Sold merchandise on credit to Jose Garcia, Invoice No. 855, for $19,000 (cost is $11,400). Mar. 6 Borrowed $98,000 cash from First Bank by signing a long-term note payable. Mar. 9 Purchased $22,050 of office equipment on credit from Perez Supply, invoice dated March 9, terms n/10 EOM. Mar. 10 Sold merchandise on credit to Hillary Mannion, Invoice No. 856, for $15,200 (cost is $9,100). Mar. 12 Received payment from Gonzalez Co. for the March 2 sale less the discount. Mar. 13 Sent Lee Industries Check No. 416 in payment of the March 1 invoice less the discount. Mar. 13 Received payment from Jose Garcia for the March 3 sale less the discount. Mar. 14 Purchased $46,200 of merchandise from the Hall Co., invoice dated March 13, terms 2/10, n/30. Mar. 15 Issued Check No. 417, payable to Payroll, in payment of sales salaries expense for the first half of the month, $21,700. Cashed the check and paid the employees. Mar. 15 Cash sales for the first half of the month are $35,000 (cost is $21,000). (Cash sales are recorded daily, but are recorded only twice here to reduce repetitive entries.) Mar. 16 Purchased $2,200 of store supplies on credit from Walker Company, invoice dated March 16, terms n/10 EOM. Mar. 17 Received a $4,200 credit memorandum from Hall Co. for the return of unsatisfactory merchandise purchased on March 14. Mar. 19   Received a $3,310 credit memorandum from Perez Supply for office equipment received on March 9 and returned for credit. Mar. 20 Received payment from Hillary Mannion for the sale of March 10 less the discount. Mar. 23 Issued Check No. 418 to Hall Co. in payment of the invoice of March 13 less the March 17 return and the discount. Mar. 27 Sold merchandise on credit to Hillary Mannion, Invoice No. 857, for $33,000 (cost is $19,800). Mar. 28   Sold merchandise on credit to Jose Garcia, Invoice No. 858, for $11,400 (cost is $6,800). Mar. 31 Issued Check No. 419, payable to Payroll, in payment of sales salaries expense for the last half of the month, $21,700. Cashed the check and paid the employees. Mar. 31

Cash sales for the last half of the month are $31,500 (cost is $18,900).

Explanation / Answer

Please hit LIKE button if this helped. For any further explanation, please put your query in comment, will get back to you. Date Account Debit Credit Journal Mar 1 Merchandise Inventory 45300 Special Accounts Payable-Lee Industries 45300 Special Mar 2 Accounts Receivable-Gonzalez 37200 Special Sales Revenue 37200 Special Cost of Merchandise Sold 22000 Special Merchandise Inventory 22000 Special Mar 3 Office Supplies 1300 Special Accounts Payable-Walker Company 1300 Special Mar 3 Accounts Receivable-Jose Garcia 19000 Special Sales Revenue 19000 Special Cost of Merchandise Sold 11400 Special Merchandise Inventory 11400 Special Mar 6 Cash 98000 Special Long Term Note Payable 98000 Special Mar 9 Office Equipment 22050 Special Accounts Payable-Perez Supply 22050 Special Mar 10 Accounts Receivable-Hillary 15200 Special Sales Revenue 15200 Special Cost of Merchandise Sold 9100 Special Merchandise Inventory 9100 Special Mar 12 Cash 98% 36456 Special Sales Discount 2% 744 Special Accounts Receivable-Gonzalez 37200 Special Mar 13 Cash 98% 18620 Special Sales Discount 2% 380 Special Accounts Receivable-Jose Garcia 19000 Special Mar 14 Merchandise Inventory 46200 Special Accounts Payable-Hall Co 46200 Special Mar 15 Sales Salaries Expense 21700 Special Cash 21700 Special Mar 15 Cash 35000 Special Sales Revenue 35000 Special Cost of Merchandise Sold 21000 Special Merchandise Inventory 21000 Special Mar 16 Store Supplies 2200 Special Accounts Payable-Walker 2200 Special Mar 17 Accounts Payable-Hall Co 4200 General Merchandise Inventory 4200 General Mar 19 Accounts Payable-Perez Supply 3310 General Office Equipment 3310 General Mar 20 Cash 98% 14896 Special Sales Discount 2% 304 Special Accounts Receivable-Hillary 15200 Special Mar 23 Accounts Payable-Hall Co 42000 Special Cash 98% 41160 Special Merchandise Inventory 2% 840 Special Mar 27 Accounts Receivable-Hillary 33000 Special Sales Revenue 33000 Special Cost of Merchandise Sold 19800 Special Merchandise Inventory 19800 Special Mar 28 Accounts Receivable-Jose Gracia 11400 Special Sales Revenue 11400 Special Cost of Merchandise Sold 6800 Special Merchandise Inventory 6800 Special Mar 31 Sales Salaries Expense 21700 Special Cash 21700 Special Mar 31 Cash 31500 Special Sales Revenue 31500 Special Cost of Merchandise Sold 18900 Special Merchandise Inventory 18900 Special

Related Questions

Navigate

• Browse (All)
• Browse G
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.