Reference no: EM131122910
The following selected transactions were completed by Rayne Supplies Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
Aug. 1. Sold merchandise on account to Tomahawk Co., $12,500, terms FOB shipping point, n/eom. The cost of merchandise sold was $7,500.
2. Sold merchandise for $20,000 plus 7% sales tax to retail cash customers. The cost of merchandise sold was $13,100.
5. Sold merchandise on account to Epworth Company, $30,000, terms FOB destination, 1/10, n/30. The cost of merchandise sold was $19,500.
8. Sold merchandise for $11,500 plus 7% sales tax to retail customers who used VISA cards. The cost of merchandise sold was $7,000.
13. Sold merchandise to customers who used MasterCard cards, $8,000. The cost of merchandise sold was $5,000.
Aug. 14. Sold merchandise on account to Osgood Co., $11,800, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $7,000.
15. Received check for amount due from Epworth Company for sale on August 5.
16. Issued credit memo for $1,800 to Osgood Co. for merchandise returned from sale on August 14. The cost of the merchandise returned was $1,000.
18. Sold merchandise on account to Horton Company, $6,850, terms FOB shipping point, 2/10, n/30. Paid $210 for freight and added it to the invoice. The cost of merchandise sold was $4,100.
24. Received check for amount due from Osgood Co. for sale on August 14 less credit memo of August 16 and discount.
28. Received check for amount due from Horton Company for sale of August 18.
31. Paid Piper Delivery Service $2,100 for merchandise delivered during August to customers under shipping terms of FOB destination.
31. Received check for amount due from Tomahawk Co. for sale of August 1.
Sept. 3. Paid First Federal Bank $980 for service fees for handling MasterCard and VISA sales during August.
10. Paid $1,750 to state sales tax division for taxes owed on sales.
Instructions
Journalize the entries to record the transactions of Rayne Supplies Co.