During May, the last month of the fiscal year, the following transactions were c
ID: 2446189 • Letter: D
Question
During May, the last month of the fiscal year, the following transactions were completed:
Record the following transactions on page 20 of the journal. Refer to the Chart of Accounts for exact wording of account titles.
May 1 Paid rent for May, $5,000. 3 Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, $36,000. 4 Paid freight on purchase of May 3, $600. 6 Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, $68,500. The cost of the merchandise sold was $41,000. 7 Received $22,300 cash from Halstad Co. on account. 10 Sold merchandise for cash, $54,000. The cost of the merchandise sold was $32,000. 13 Paid for merchandise purchased on May 3. 15 Paid advertising expense for last half of May, $11,000. 16 Received cash from sale of May 6. 19 Purchased merchandise for cash, $18,700. 19 Paid $33,450 to Buttons Co. on account. 20 Paid Korman Co. a cash refund of $13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was $13,500 and the cost of the returned merchandise was $8,000.Explanation / Answer
Date
Title of Account
Debit
Credit
May
1
Rent Expenses
5000
Cash
5000
3
Merchandise Inventory
36000
Martin Co.
36000
4
Merchandise Inventory
600
Cash
600
6
Korman Co.
68500
To Sales
41000
To Income Statement
27500
7
Cash
22300
To Halstad Co.
22300
10
Cash
54000
To Sales
32000
To Income Statement
22000
13
Martin Co.
36000
To Cash
36000
15
Advertising Expense
11000
Cash
11000
16
Cash
68500
Korman Co.
68500
19
Merchandise Inventory
18700
Cash
18700
19
Buttons Co.
33450
Cash
33450
20
Sales Return
8000
Income Statement
5500
Korman Co.
13500
20
Korman Co.
13500
Cash
13230
Income Statement
270
Date
Title of Account
Debit
Credit
May
1
Rent Expenses
5000
Cash
5000
3
Merchandise Inventory
36000
Martin Co.
36000
4
Merchandise Inventory
600
Cash
600
6
Korman Co.
68500
To Sales
41000
To Income Statement
27500
7
Cash
22300
To Halstad Co.
22300
10
Cash
54000
To Sales
32000
To Income Statement
22000
13
Martin Co.
36000
To Cash
36000
15
Advertising Expense
11000
Cash
11000
16
Cash
68500
Korman Co.
68500
19
Merchandise Inventory
18700
Cash
18700
19
Buttons Co.
33450
Cash
33450
20
Sales Return
8000
Income Statement
5500
Korman Co.
13500
20
Korman Co.
13500
Cash
13230
Income Statement
270
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