Reference no: EM132721500
Question - Sales-Related and Purchase-Related Transactions Using Periodic Inventory System
The following were selected from among the transactions completed by Essex Company during July of the current year:
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.
July 5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
July 6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000.
July 7. Returned $6,850 of merchandise purchased on July 5 from Kester Co.
July 13. Paid Hamling Co. on account for purchase of July 3.
July 15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
July 21. Received cash on account from sale of July 6 to Parsley Co.
July 21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.
July 22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
July 23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.
July 28. Paid Parsley Co. a cash refund of $2,500 for damaged merchandise from sale of July 6. Parsley Co. kept the merchandise.
July 31. Paid MasterCard service fee of $1,650.
Required - Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system. If an amount box does not require an entry, leave it blank.