Journalize the entries to record the transactions of Capers

Journalize the entries to record the transactions of Capers Company for October. PR 5-2A Sales-related transactions using perpetual inventory system The following selected transactions were completed by Amsterdam Supply Co., which sells office supplies primarily to wholesalers and occasionally to retail customers: Mar. 2. Sold merchandise on account to Equinox Co., $18,900, terms FOB destination, OBJ. 2 1/10, n/30. The cost of the merchandise sold was $13,300. 3, sold merchandise for $11,350 plus 6% sales tax to retail cash customers. The cost of merchandise sold was $7,000. 4. Sold merchandise on account to Empire Co., $55,400, terms FOB shipping point, n/eom. The cost of merchandise sold was $33,200. 5. Sold merchandise for $30,000 plus 6% sales tax to retail customers who used MasterCard. The cost of merchandise sold was $19,400. 12. Received check for amount due from Equinox Co. for sale on March 2. 14. Sold merchandise to customers who used American Express cards, $13,700. The cost of merchandise sold was $8,350. 16. Sold merchandise on account to Targhee Co., $27,500, terms FOB shipping point, 1/10, n/30. The cost of merchandise sold was $16,000. sale on March 16. The cost of the merchandise returned was $2,900. 2/10, n/30. Added $75 to the invoice for prepaid freight. The cost of merchan- 18. Issued credit memo for $4,800 to Targhee Co. for merchandise returned from 19. Sold merchandise on account to Vista Co., $8,250, terms FOB shipping point, dise sold was $5,000. 26. Received check for amount due from Targhee Co. for sale on March 16 less credit memo of March 18. (Continued)

Solution

Date Account Titles & Explanation Debit Credit Mar 2 Accounts Receivable-Equinox Co $18,900.00 Sales $18,900.00 Cost of Merchandise Sold $13,300.00 Merchandise Inventory $13,300.00 Mar 3 Cash $11,350.00 Sales $10,669.00 Sales Tax Payable $681.00 Cost of Merchandise Sold $7,000.00 Merchandise Inventory $7,000.00 Mar 4 Accounts Receivable-Empire Co $55,400.00 Sales $55,400.00 Cost of Merchandise Sold $33,200.00 Merchandise Inventory $33,200.00 Mar 5 Cash $30,000.00 Sales $28,200.00 Sales Tax Payable $1,800.00 Cost of Merchandise Sold $19,400.00 Merchandise Inventory $7,000.00 Mar 12 Cash $18,711.00 Sales Discount $189.00 Account Receivable-Equinox Co $18,900.00 Mar 14 Cash $13,700.00 Sales $13,700.00 Cost of Merchandise Sold $8,350.00 Merchandise Inventory $8,350.00 Mar 16 Accounts Receivable-Targhee Co $27,500.00 Sales $27,500.00 Cost of Merchandise Sold $16,000.00 Merchandise Inventory $16,000.00 Mar 18 Sales Returns and Allowances $4,800.00 Accounts Receivable-Targhee Co $4,800.00 Cost of Merchandise Sold $2,900.00 Merchandise Inventory $2,900.00 Mar 19 Accounts Receivable- Vista Co $8,250.00 Sales $8,250.00 Accounts Receivable- Vista Co $75.00 Cash $75.00 Cost of Merchandise Sold $5,000.00 Merchandise Inventory $5,000.00 Mar 26 Cash $22,473.00 Sales Discount $227.00 Account Receivable-Targhee Co $22,700.00 Mar 28 Cash $8,160.00 Sales Discount (2% x $8250) $165.00 Account Receivable-Vista Co $8,325.00 Mar 31 Cash $55,400.00 Account Receivable- Empire Co $55,400.00 Mar 31 Delivery Expenses $5,600.00 Cash $5,600.00 Apr 3 Credit card Expenses $940.00 Cash $940.00 Apr 15 Sales Tax Payable $6,544.00 Cash $6,544.00