The following selected transactions were completed by Amsterdam Supply Co., whic

Question

The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail 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., $19,200, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $14,260. 3 Sold merchandise for $11,450 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $6,930. 4 Sold merchandise on account to Empire Co., $52,890, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,880. 5 Sold merchandise for $30,850 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,430. 12 Received check for amount due from Equinox Co. for sale on March 2. 14 Sold merchandise to customers who used American Express cards, $15,060. The cost of merchandise sold was $9,150. 16 Sold merchandise on account to Targhee Co., $26,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $15,500. 18 Issued credit memo for $4,600 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $3,170.

Explanation / Answer

Journal Entry

Date Account Title & Explaination Debit Credit Mar 2 Accounts Recievable -Equinox co 19200 Sale 19200 Cost of the merchandise sold 14260 Inventory 14260 Mar 3 Cash 12137 Sale 11450 Sales Tax Payable 687 Cost of the merchandise sold 6930 Inventory 6930 Mar 4 Accounts Recievable -Empire Co 52890 Sale 52890 Cost of the merchandise sold 33880 Inventory 33880 Mar 5 Cash 32701 Sale 30850 Sales Tax Payable 1851 Cost of the merchandise sold 19430 Inventory 19430 Mar 12 Cash 19008 Sales Discount 192 Accounts Recievable -Equinox co 19200 Mar 14 Cash 15060 Sale 15060 Cost of the merchandise sold 9150 Inventory 9150 Mar 16 Accounts Recievable -Targhee Co 26800 Sale 26800 Cost of the merchandise sold 15500 Inventory 15500 Mar 18 Sales Return & Allowances 4600 Accounts Recievable -Targhee Co 4600 Inventory 3170 Cost of the merchandise sold 3170 Mar 19 Accounts Recievable -Vista Co 8535 Sale 8450 Freight 85 Cost of the merchandise sold 4510 Inventory 4510 Mar 26 Cash 21978 Sales Discount 222 Accounts Recievable -Targhee co 22200 Mar 28 Cash 8366 Sales Discount (8450*2%) 169 Accounts Recievable -Vista co 8535 Mar 31 Cash 52890 Accounts Recievable -Empire Co 52890 Mar 31 Freight 5120 Cash 5120 Apr 3 Service fee Charges 900 Cash 900 Apr 15 Sales Tax Payable 6016 Cash 6016

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