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.
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.
SOLUTION PREVIEW
LOWRY COMPANY
Sales Journal
S1
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Acct. Rec. Dr
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C. of G. S. Dr.
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Date
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Account Debited
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Invoice No.
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Ref. Sales Cr..
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Mer. Inv. Cr.
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July 2
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B. Rice
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100
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15,000
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10,500
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July 15
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J. Mays
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101
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9,000
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6,300
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