The Marchetti Soup Company entered into the following transactions during the month of June:

(1) purchased inventory on account for $200,000 (assume Marchetti uses a perpetual inventory system);

(2) paid $51,000 in salaries to employees for work performed during the month;

(3) sold merchandise that cost $142,000 to credit customers for $255,000;

(4) collected $235,000 in cash from credit customers; and

(5) paid suppliers of inventory $180,000. Prepare journal entries for each of the above transactions.

The journal entries are shown below:

1. Merchandise Inventory A/c Dr $200,000

To Account payable A/c $200,000

(Being the inventory purchased is recorded)

2. Salaries Expense A/c Dr $51,000

To Cash A/c $51,000

(Being salaries expenses are paid for cash)

3. Cost of goods sold A/c Dr $142,000

To Merchandise Inventory $142,000

(Being the merchandise is sold for cost)

Accounts receivable A/c Dr $255,000

To Sales revenue A/c $255,00

(Being the merchandise is sold on credit)

4. Cash A/c Dr $235,000

To Accounts receivable A/c $235,000

(Being the cash is collected)

5. Accounts payable A/c Dr 180,000

To Cash A/c 180,000

(Being cash is paid)