The following selected transactions were completed by Amsterdam Supply Co., whic
ID: 2543353 • Letter: T
Question
The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers. Note that the company uses a clearing house to take care of all bank as well as non-bank credit cards used by its customers.
Record on page 10 of the journal
Mar.
2
Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.
3
Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000.
4
Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.
5
Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.
12
Received check for amount due from Equinox Co. for sale on March 2.
14
Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.
16
Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000.
18
Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Record on page 11 of the journal
19
Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of merchandise sold was $5,000.
26
Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18.
28
Received check for amount due from Vista Co. for sale of March 19.
31
Received check for amount due from Empire Co. for sale of March 4.
31
Paid Fleetwood Delivery Service $5,600 for delivery of merchandise in March to customers under shipping terms of FOB destination.
Apr.
3
Paid City Bank $940 for service fees for handling MasterCard and American Express sales during March.
15
Paid $6,544 to state sales tax division for taxes owed on sales.
Journalize the entries to record the transactions of Amsterdam Supply Co. Refer to the Chart of Accounts for exact wording of account titles.
CHART OF ACCOUNTS
Amsterdam Supply Co.
General Ledger
ASSETS
110
Cash
121
Accounts Receivable-Empire Co.
122
Accounts Receivable-Equinox Co.
123
Accounts Receivable-Targhee Co.
124
Accounts Receivable-Vista Co.
125
Notes Receivable
130
Merchandise Inventory
131
Estimated Returns Inventory
140
Office Supplies
141
Store Supplies
142
Prepaid Insurance
180
Land
192
Store Equipment
193
Accumulated Depreciation-Store Equipment
194
Office Equipment
195
Accumulated Depreciation-Office Equipment
LIABILITIES
210
Accounts Payable
216
Salaries Payable
218
Sales Tax Payable
219
Customer Refunds Payable
221
Notes Payable
EQUITY
310
Owner, Capital
311
Owner, Drawing
312
Income Summary
REVENUE
410
Sales
610
Interest Revenue
EXPENSES
510
Cost of Merchandise Sold
521
Delivery Expense
522
Advertising Expense
524
Depreciation Expense-Store Equipment
525
Depreciation Expense-Office Equipment
526
Salaries Expense
531
Rent Expense
533
Insurance Expense
534
Store Supplies Expense
535
Office Supplies Expense
536
Credit Card Expense
539
Miscellaneous Expense
710
Interest Expense
Mar.
2
Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, 1/10, n/30. The cost of the merchandise sold was $13,300.
3
Sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000.
4
Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200.
5
Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400.
12
Received check for amount due from Equinox Co. for sale on March 2.
14
Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350.
16
Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000.
18
Issued credit memo for $4,800 to Targhee Co. for merchandise returned from sale on March 16. The cost of the merchandise returned was $2,900.
Explanation / Answer
Journal Entries (Amounts in $)
Date Account Titles and Explanations Debit Credit Mar. 2 Accounts Receivable-Equinox Co. 18,900 Sales 18,900 Mar. 2 Cost of Merchandise Sold 13,300 Merchandise Inventory 13,300 Mar. 3 Cash 11,350 Sales Tax Payable ($11,350*6%) 681 Sales ($11,350 - $681) 10,669 Mar. 3 Cost of Merchandise Sold 7,000 Merchandise Inventory 7,000 Mar. 4 Accounts Receivable-Empire Co. 55,400 Sales 55,400 Mar. 4 Cost of Merchandise Sold 33,200 Merchandise Inventory 33,200 Mar. 5 Cash 30,000 Sales Tax Payable ($30,000*6%) 1,800 Sales ($30,000 - $1,800) 28,200 Mar. 5 Cost of Merchandise Sold 19,400 Merchandise Inventory 19,400 Mar. 12 Cash ($18,900 - $189) 18,711 Sales discount ($18,900*1%) 189 Accounts Receivable-Equinox Co. 18,900 Mar. 14 Cash 13,700 Sales 13,700 Mar. 14 Cost of Merchandise Sold 8,350 Merchandise Inventory 8,350 Mar. 16 Accounts Receivable-Targhee Co. 27,500 Sales 27,500 Mar. 16 Cost of Merchandise Sold 16,000 Merchandise Inventory 16,000 Mar. 18 Estimated Returns Inventory 4,800 Accounts Receivable-Targhee Co. 4,800 Mar. 18 Merchandise Inventory 2,900 Cost of Merchandise Sold 2,900 Mar. 19 Accounts Receivable-Vista Co. ($8,250+$75) 8,325 Sales 8,325 Mar. 19 Cost of Merchandise Sold 5,000 Merchandise Inventory 5,000 Mar. 26 Cash ($22,700 - $227) 22,473 Sales discount ($22,700*1%) 227 Accounts Receivable-Targhee Co. ($27,500-$4,800) 22,700 Mar. 28 Cash ($8,325-$165) 8,160 Sales discount ($8,250*2%) 165 Accounts Receivable-Vista Co. 8,325 Mar. 31 Cash 55,400 Accounts Receivable-Empire Co. 55,400 Mar. 31 Delivery Expense 5,600 Cash 5,600 Apr. 3 Credit Card Expense 940 Cash 940 Apr. Sales tax payable 6,544 Cash 6,544Related Questions
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