Reference no: EM132627446
The following transactions were completed by Montrose Company during May of the current year. Montrose Company uses a perpetual inventory system.
May 3.
Purchased merchandise on account from Floyd Co., $4,000, terms FOB shipping point, 2/10, n/30, with prepaid transportation costs of $120 added to the invoice.
5.
Purchased merchandise on account from Kramer Co., $8,500, terms FOB destination, 1/10, n/30.
6.
Sold merchandise on account to C. F. Howell Co., $2,800, terms 2/10, n/30. The cost of the merchandise sold was $1,125.
8.
Purchased office supplies for cash, $150. 10 Returned merchandise purchased on May 5 from Kramer Co., $1,300.
13.
Paid Floyd Co. on account for purchase of May 3, less discount.
14.
Purchased merchandise for cash, $10,500.
15.
Paid Kramer Co. on account for purchase of May 5, less return of May 10 and discount.
16.
Received cash on account from sale of May 6 to C. F. Howell Co., less discount.
19.
Sold merchandise on nonbank credit cards and reported accounts to the card company, American Express, $2,450. The cost of the merchandise sold was $980.
22.
Sold merchandise on account to Comer Co., $3,480, terms 2/10, n/30. The cost of the merchandise sold was $1,400.
24.
Sold merchandise for cash, $4,350. The cost of the merchandise sold was $1,750.
25.
Received merchandise returned by Comer Co. from sale on May 22, $1,480. The cost of the returned merchandise was $600.
31.
Received cash from card company for nonbank credit card sales of May 19, less $140 service fee.
Required
Question 1: Journalise the preceding transactions.