Question : 146.The Saginaw Company uses special journals for sales, purchases, cash : 1236976

146.The Saginaw Company uses special journals for sales, purchases, cash receipts, cash disbursements, and uses a general journal. They operate with a perpetual inventory system. Record the following transactions related to sales and cash receipts that occurred during the month of August: 

Aug.3Sold $8,700 merchandise to Kline Co., terms 2/10, n/30, Invoice No. 826. The cost of the goods sold was $3,900.

6Sold merchandise on credit for $3,500 to Mentor Corp., Invoice No. 827. The cost of the good sold is $1,750.

10Mentor Corp. returned $750 of defective merchandise from the Aug. 6 sale. The cost of the merchandise was $330.

12Collected amount due from the Kline Co. for merchandise sold on Aug. 3.

31Collected on the Aug. 6 sale to Mentor Corp., net of the return.

Record the above transactions into the appropriate journals that follow. 

Sales JournalPage 31

DateAccount DebitedInvoiceNumberPRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.

Cash Receipts JournalPage 23

DateAccount CreditedExplanationPRCash Dr.SalesDiscount Dr.AccountsReceivable Cr.Sales Cr.OtherAccounts Cr.Cost of Goods sold Dr.Inventory Cr.

General JournalPage 8

DateAccountsPRDr.Cr.

147.A company uses a sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. A perpetual inventory system is used. The following transactions were completed by the company during the current month of February: 

Feb.3Sold merchandise for $5,000 to the North Corp. on credit, Invoice No. 785. Cost of the goods sold is $2,900.

6Sold a piece of land for $25,000 cash. The land was originally purchased for $25,000.

11Purchased supplies from Office Mate for $240 Cash. Check No. 2316.

15Issued a credit memo for $850 to North Corp. for returned merchandise. Cost of the goods returned is $410.

21Returned $130 of merchandise purchased from Shifton Corp. for credit on account.

22Paid cash to Rentals Inc. for monthly rent of $3,500. Check No. 2317.

31Recorded depreciation on equipment of $7,000.

Record these transactions in the appropriate journals that follow. 

Sales Journal

DateAccount DebitedInvoice NumberPRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.

Purchases Journal

DateAccountDate of InvoiceTermsPRAccounts Payable Cr.Inventory Dr.Office Supplies Dr.              Other Accounts Dr.

Cash Receipts Journal

DateAccount CreditedExplanationPRCash Dr.Sales Disc. Dr.Accounts Receivable Cr.Sales Cr.              Other Accounts Cr.              Cost of Goods Sold Dr.Inventory Cr.

Cash Disbursements Journal

DateCk. No.PayeeAccount DebitedPRCash Cr.Inventory Cr.Other Accounts Dr.Accounts Payable Dr.

General Journal

DateAccountsDRCR

148.Salem Co. uses special journals to record its transactions. They use the perpetual inventory system. Shown below are the purchasing and cash disbursement transactions for current month of July: 

July1Purchased merchandise for cash from Van Co. $4,400, Check No. 1033.

2Purchased office equipment from Bat Co. on credit, $6,700, terms n/60. Invoice dated July 1.

6Paid Badger, Inc., $3,900 cash for previous purchases on account, which is net of a $100 discount, Check No. 1034.

9Purchased merchandise from Aztec, Inc. on credit, terms 1/15, n/30, $23,600. Invoice dated July 8.

10Paid Bat Co. cash for May 2 purchase, Check No. 1035.

18Purchased office supplies on credit $130, terms net EOM from Roberts, Co., Invoice dated July 17.

Record these transactions in the following journals. 

Purchases Journal

DateAccountDate of InvoiceTermsPRAccounts Payable Cr.Inventory Dr.OfficeSuppliesDr.OtherAccounts Dr.

Cash Disbursements Journal

DateCk. No.PayeeAccount DebitedPRCash Cr.Inventory Cr.OtherAccounts Dr.Accounts PayableDr.