Question

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.

Answer 1

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.