Reference no: EM132694746
Problem - The following selected transactions were completed by Green Lawn Supplies Co., which sells irrigation supplies primarily to other businesses and occasionally to retail customers:
July 1. Sold merchandise on account to Landscapes Co., $33,450, terms FOB shipping point, n/eom. The cost of the goods sold was $20,000.
July 2. Sold merchandise for $86,000 plus 8% sales tax to retail cash customers. The cost of the goods sold was $51,600.
July 5. Sold merchandise on account to Peacock Company, $17,500, terms FOB destination, 1/10, n/30. The cost of the goods sold was $10,000.
July 8. Sold merchandise for $112,000 plus 8% sales tax to retail customers who used VISA cards. The cost of the goods sold was $67,200.
July 13. Sold merchandise to customers who used MasterCard cards, $96,000. The cost of the goods sold was $57,600.
July 14. Sold merchandise on account to Loeb Co., $16,000, terms FOB shipping point, 1/10, n/30. The cost of the goods sold was $9,000.
July 15. Received check for amount due from Peacock Company for sale on July 5.
July 16. Issued credit memo to Loeb Co. for merchandise with an invoice amount of $3,000 returned from the sale on July 14. The cost of the merchandise returned was $1,800.
July 18. Sold merchandise on account to Jennings Company, $11,350, terms FOB shipping point, 2/10, n/30. Paid $475 for freight and added it to the invoice. The cost of the goods sold was $6,800.
July 24. Received check for amount due from Loeb Co. for sale on July 14 less credit memo of July 16.
July 28. Received check for amount due from Jennings Company for sale of July 18.
July 31. Paid Black Lab Delivery Service $8,550 for merchandise delivered during July to customers under shipping terms of FOB destination.
July 31. Received check for amount due from Landscapes Co. for sale of July 1.
Aug. 3. Paid Hays Federal Bank $3,770 for service fees for handling MasterCard and VISA sales during July.
Aug. 10. Paid $41,260 to sta2te sales tax division for taxes owed on sales.
Instructions - Make entries to record transactions of Green Lawn Supplies Co.