Lowry Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 70% of the sales price.
July 2 Sold merchandise for $15,000 to B. Rice on account. Credit terms 2/10, n/30. Sales invoice No. 100.
July 5 Received a check for $800 from R. Hyatt in payment of his account.
July 8 Sold merchandise to F. Wenger for $900 cash.
July 10 Received a check in payment of Sales invoice No. 100 from B. Rice minus the 2% discount.
July 15 Sold merchandise for $9,000 to J. Mays on account. Credit terms 2/10, n/30. Sales invoice No. 101. CLICK HERE FOR SOLUTION
July 18 Borrowed $25,000 cash from United Bank signing a 6-month, 10% note.
July 20 Sold merchandise for $12,000 to C. Kane on account. Credit terms 2/10, n/30. Sales invoice No. 102.
July 25 Issued a credit (reduction) of $600 to C. Kane as an allowance for damaged merchandise previously sold on account.
July 31 Received a check from J. Mays for $5,000 as payment on account.
LOWRY COMPANY
Sales Journal
S1
Invoice Acct. Rec. Dr. C. of G. S. Dr.
Date Account Debited No. Ref. Sales Cr. Mer. Inv. Cr.
LOWRY COMPANY
General Journal
G1
Date Explanations Ref. Debit Credit
LOWRY COMPANY
Cash Receipts Journal
CR1
Sales Accounts Other C. of G. S. Dr.
Accounts Cash Discounts Rec. Sales Accounts Mer. Inv. Cr.
Date Credited Ref. Dr. Dr. Cr. Cr. Cr. CLICK HERE FOR SOLUTION
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