All of the company’s accounting work is completed through the end of September and its ledgers show September 30 balances.

During October the company experiences the following transactions and events.

Terms for all credit sales are 2/10, n/30 unless otherwise stated differently.

Consider purchase payment discounts to be a reduction in inventory.

When recording a check, the check total is listed on the journal line, not each part. Review your Demonstration Problems.

XINEF COMPANY

Inv. No.Check

Date DescriptionNameor DateNo.TermsAmount

Oct1 Paid rent (80% selling space, 20% office space)Realty Management LLC101 $4,000

2 Sold merchandise on credit (cost $4,400)Harker Company11012/10, n/60 6,600

2 Issued credit memo on returned merch.Buckeye, Inc. Sep. 28 200

Total selling price (gross)Buckeye, Inc. Sep. 28 4,800

3 Received credit memo on returned merch.Dallas Products Sep. 29 800

4 Purchased merchandise on creditAmes Supply Co. Oct 4 n/10 EOM 35,000

Purchased store supplies on creditAmes Supply Co. Oct 4 n/10 EOM 600

Purchased office supplies on creditAmes Supply Co. Oct 4 n/10 EOM 100

5 Received payment less discount and returnBuckeye, Inc. Sep. 28 2/10 EOM

8 Paid inv. less 2 % discount and Oct 3 returnDallas Products Sep. 29 102

9 Sold store supplies for cash at cost 400

10 Purchased office equipment on creditAmes Supply Co. Oct 10 n/10 EOM 4,000

11 Received payment less discountHarker Company Oct 2

11 Purchased merchandise on creditGarland, Inc. Oct 10 2/10, n/30 9,000

12 Received credit memo on returned merch.Ames Supply Co. Oct 10 800

15 Check issued for sales salariesPayroll103 5,000

Check issued for office salariesPayroll103 3,000

15 Cash sales for first half of month (cost $40,000) 60,000

16 Sold merchandise on credit (cost $2,000)Harker Company11022/10, n/60 4,000

17 Purchased merchandise on creditNorwalk Corp. Oct 14 2/10, n/60 15,000

19 Paid invoice less discountGarland, Inc. Oct 10 104

22 Sold merchandise on credit (cost $5,000)Sigma Services11032/10, n/60 7,000

23 Paid invoice less discountNorwalk Corp. Oct 14 105

24 Purchased merchandise on creditAmes Supply Co. Oct 23 n/10 EOM 8,000

Purchased store supplies on creditAmes Supply Co. Oct 23 n/10 EOM 600

Purchased office supplies on creditAmes Supply Co. Oct 23 n/10 EOM 300

25 Purchased merchandise on creditDallas Products Oct 23 2/10, n/30 3,000

26 Sold merchandise on credit (cost $8,000)Static Corp.11042/10, n/60 14,000

26 Paid Sep electric billUnited Power106 1,200

29 Issued check to owner for personal useMark G107 7,000

30 Received payment less discountSigma Services Oct 22

30 Check issued for sales salariesPayroll108 6,000

Check issued for office salariesPayroll108 3,000

31 Cash sales for second half of month (cost $45,000) 70,000

Additional information:

a. The annual insurance premium is $3,600; the policy runs from October through September.

b. Ending store supplies inventory 2,500

c. Ending office supplies inventory 500

d. Estimated depreciation of store equipment 600

e. Estimated depreciation of office equipment 300