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.|
|5||Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.|
|6||Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000.|
|7||Returned $6,850 of merchandise purchased on July 5 from Kester Co.|
|13||Paid Hamling Co. on account for purchase of July 3.|
|15||Paid Kester Co. on account for purchase of July 5, less return of July 7.|
|21||Received cash on account from sale of July 6 to Parsley Co.|
|21||Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.|
|22||Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.|
|23||Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.|
|28||Paid Parsley Co. a cash refund of $7,150 for returned merchandise from the sale of July 6. The cost of the returned merchandise was $4,250.|
|31||Paid MasterCard service fee of $1,650.|
Journalize the transactions.
It is a mandatory requirement for companies to record all their financial transactions. Journal entry organizes the financial data of a company that is helpful in preparing financial statements.
Answer and Explanation: 1
|Date||Particulars||Debit ($)||Credit ($)||Calculation|
|Accounts Payable-Hamling Co.||61,426||($61,200 * (1 - 2%)) + $1,450|
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fromChapter 3 / Lesson 10
Discover the meaning of a journal entry and a trial balance, types of journal entries, how a general ledger differs from a trial balance, and some examples.