Chapter 5 Accounting for Merchandise Operations 251Mar. 14 Sold merchandise on account to Blech Co., $7,500, terms FOB shipping point, 1/10,
n/30. The cost of merchandise sold was $4,000.
15 Received check for amount due from North Star Company for sale on March 5.
16 Issued credit memorandum for $800 to Blech Co. for merchandise returned from sale
on March 14. The cost of the merchandise returned was $360.
18 Sold merchandise on account to Westech Company, $6,850, terms FOB shipping
point, 2/10, n/30. Paid $210 for transportation costs and added them to the invoice.
The cost of merchandise sold was $4,100.
24 Received check for amount due from Blech Co. for sale on March 14 less credit
memorandum of March 16 and discount.
27 Received $7,680 from American Express for $8,000 of sales reported March 1–12.
28 Received check for amount due from Westech Company for sale of March 18.
31 Paid Downtown Delivery Service $1,275 for merchandise delivered during March to
customers under shipping terms of FOB destination.
31 Received check for amount due from Babcock Co. for sale of March 1.
Apr. 3 Paid First National Bank $725 for service fees for handling VISAsales during March.
10 Paid $2,800 to state sales tax division for taxes owed on March sales.Instructions
Journalize the entries to record the transactions of Interstate Supplies Co.The following selected transactions were completed by Petunia Co. during August of the cur-
rent year:Aug. 1 Purchased merchandise from Fisher Co., $8,500, terms FOB shipping point, 2/10,
n/eom. Prepaid transportation costs of $250 were added to the invoice.
5 Purchased merchandise from Byrd Co., $10,400, terms FOB destination, n/30.
10 Paid Fisher Co. for invoice of August 1, less discount.
13 Purchased merchandise from Mickle Co., $7,500, terms FOB destination, 1/10, n/30.
14 Issued debit memorandum to Mickle Co. for $2,500 of merchandise returned from
purchase on August 13.
18 Purchased merchandise from Lanning Company, $10,000, terms FOB shipping point,
n/eom.
18 Paid transportation charges of $150 on August 18 purchase from Lanning Company.
19 Purchased merchandise from Hatcher Co., $7,500, terms FOB destination, 2/10, n/30.
23 Paid Mickle Co. for invoice of August 13, less debit memorandum of August 14 and
discount.
29 Paid Hatcher Co. for invoice of August 19, less discount.
31 Paid Lanning Company for invoice of August 18.
31 Paid Byrd Co. for invoice of August 5.Instructions
Journalize the entries to record the transactions of Petunia Co. for August.The following were selected from among the transactions completed by Ingress Company dur-
ing January of the current year:Jan. 3 Purchased merchandise on account from Pynn Co., $10,400, terms FOB shipping
point, 2/10, n/30, with prepaid transportation costs of $320 added to the invoice.
5 Purchased merchandise on account from Wilhelm Co., $8,000, terms FOB destination,
1/10, n/30.Problem 5-4A
Purchase-related
transactions
Goals4, 5
GENERAL LEDGER
Problem 5-5A
Sales-related and purchase-
related transactions
Goals3, 4, 5, 6
GENERAL LEDGER