Question

Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journalize the following transactions that should be recorded in the sales journal.

May 2 Sold merchandise costing $450 to B. Facer for $675 cash, invoice no. 5703.
5 Purchased $2,600 of merchandise on credit from Marchant Corp.
7 Sold merchandise costing $1,215 to J. Dryer for $1,762, terms 3/10, n/30, invoice no. 5704.
8 Borrowed $8,000 cash by signing a note payable to the bank.
12 Sold merchandise costing $304 to R. Lamb for $486, terms n/30, invoice no. 5705.
16 Received $1,709 cash from J. Dryer to pay for the purchase of May 7.
19 Sold used store equipment (noninventory) for $900 cash to Golf, Inc.
25 Sold merchandise costing $500 to T. Taylor for $785, terms n/30, invoice no. 5706.

Answer 1

Date Customer Invoice Amount COGS

May 2 B. Facer 5703 $675 $450

May 7 J. Dryer 5704 $1,762 $1,215

May 12 R. Lamb 5705 $486 $304

May 25 T. Taylor 5706 $785 $500

The May 19 sale is a disposal of equipment, not a sale of merchandise.