Ask Question
18 December, 15:52

Finer Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May. May. 2 Sold merchandise costing $400 to B. Facer for $600 cash, invoice no. 5703.5 Purchased $2,450 of merchandise on credit from Marchant Corp. 7 Sold merchandise costing $1,080 to J. Dryer for $1,566, terms 2/10, n/30, invoice no. 5704.8 Borrowed $8,000 cash by signing a note payable to the bank. 12 Sold merchandise costing $270 to R. Lamb for $432, terms n/30, invoice no. 5705.16 Received $1,535 cash from J. Dryer to pay for the purchase of May 7.19 Sold used store equipment for $900 cash to Golf, Inc. 25 Sold merchandise costing $450 to T. Taylor for $707, terms n/30, invoice no. 5706. Journalize the May transactions that should be recorded in the sales journal assuming the perpetual inventory system is used.

+5
Answers (1)
  1. 18 December, 16:14
    0
    Answer and Explanation:

    The preparation of sales journal is shown below:-

    Date Account Invoice Account Cost of

    Debited Number Receivable Dr. Good Sold Dr.

    Sales Cr. Inventory Cr.

    May-07 J. Dryer 5704 1,566 1,080

    May-12 R. Lamb 5705 432 270

    May-25 T. Taylor 5706 707 450

    Therefore, only credit sales of merchandise inventory is included while rest of the transactions is not relevant in sales Journal.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Finer Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers