Patel Rug Company had the following credit sales transactions during March 2008:
Date |
Customer |
Quantity |
Rug Style |
Sales |
|
Mar. |
3 |
Samantha McGill |
1 |
10 by 8 Chinese |
$14,750 |
|
8 |
L. Smith |
1 |
8 by 12 Persian |
10,000 |
|
19 |
Paula Larkin |
1 |
8 by 10 Indian |
11,500 |
|
26 |
Amy Pugh |
1 |
10 by 12 Persian |
21,000 |
The March 1 inventory was $26,000, consisting of:
Quantity |
Style |
Cost per Rug |
Total Cost |
2 |
10 by 8 Chinese |
$7,500 |
$15,000 |
2 |
8 by 12 Persian |
$5,500 |
11,000 |
During March, Patel Rug Company purchased the following rugs from Lee Rug Importers:
Date |
Quantity |
Rug Style |
Cost per Rug |
Amount |
Mar. 10 |
2 |
8 by 10 Indian |
$ 6,000 |
$12,000 |
12 |
1 |
10 by 8 Chinese |
10,500 |
10,500 |
21 |
3 |
10 by 12 Persian |
16,500 |
49,500 |
The general ledger includes the following accounts:
Account |
|
Number |
Account |
11 |
Accounts Receivable |
12 |
Merchandise Inventory |
21 |
Accounts Payable |
41 |
Sales |
51 |
Cost of Merchandise Sold |
a. Record the sales in a two column sales journal. Use the sales journal form shown in 1 at the end of this chapter. Begin with Invoice No. 80.
b. Record the purchases in a purchases journal. Use the purchases journal form shown in Appendix 1 at the end of this chapter.
c. Assume that you have posted the journal entries to the appropriate ledgers. Insert the correct posting references in the sales and purchases journals.
d. Determine the March 31 balance of Merchandise Inventory.