The following were selected from among the transactions completed by Essex Compa

Question

The following were selected from among the transactions completed by Essex Company during July of the current year:

Required:

Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system.

For a compound transaction, if an amount box does not require an entry, leave it blank.

July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice. 5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000. 7. Returned $6,850 of merchandise purchased on July 5 from Kester Co. 13. Paid Hamling Co. on account for purchase of July 3. 15. Paid Kester Co. on account for purchase of July 5, less return of July 7. 21. Received cash on account from sale of July 6 to Parsley Co. 21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800. 22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000. 23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000. 28. Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250. 31. Paid MasterCard service fee of $1,650.

Explanation / Answer

Date Accounts title and explanations Debit $ Credit $ 3-Jul Purchases Account Dr. 62650     Accounts payable 62650 5-Jul Purchase Account Dr. 33450     Accounts payable 33450 6-Jul Accounts rececivable Dr. 36000    Sales revenue 36000 7-Jul Accounts payable Dr. 6850     Purchase returns 6850 13-Jul Accounts payable Dr. 62650    Cash Account 61397     Purchase discount 1253 15-Jul Accounts payable Dr. 26600    Cash Account 26068     Purchase discount 532 21-Jul Cash account Dr. 36,000      Accounts receivable 36000 21-Jul Cash Account Dr. 108000     sales revenue 108000 22-Jul Accounts rececivable Dr. 16650     Sales revenue 16650 23-Jul Cash Account Dr. 91200     sales revenue 91200 28-Jul Sales return Dr. 7150      Cash 7150 31-Jul Credit Service expense Dr. 1650     Cash Account 1650

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