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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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