Billy Bob Supply Company uses four special journals: purchases, sales, cash receipts, and cash disbursements, along with a general journal. The following transactions were incurred during August:Aug. 1 Purchased merchandise from Able Co. for $6,000, terms 2/10, n/30.
3. Received check from Fox Co. (full balance outstanding) for July sale (less the 2% discount).
3 Sent check No.757 for $4,900 to Able Co. in full payment of outstanding balance from priormonth.
4 Sold merchandise on credit to Coe Co. for $5,000, terms 2/10, n/30, Invoice No. 245. Cost of the goods sold is $2,100.
5 Purchased merchandise from Baker Co. for $6,000, terms 1/15, n/30.
8 Purchased office supplies on credit from Echo Co. for $500, terms n/30.
9 Returned merchandise costing $300 to Able Co. from August 1 purchase.
11 Paid Able Co. for the August 1 purchase, (less discount) Check No. 758.
13 Received cash payment from Coe Co. for August 4 sale (less discount).
15 Paid August rent of $1,000, Check No. 759.
15 Sold merchandise on credit to Fox Co. for $5,000, terms 2/10, n/30, Invoice No. 246. Cost of the goods sold is $2,400.
18 Sold merchandise on credit to Coe Co. for $3,000, terms 2/10, n/30, Invoice No. 247. Cost of the goods sold is $1,200.
18 Received $2,300 cash for the $2,000 note receivable from Fox Corp. (included $300 Interest).
19 Sold merchandise on credit to Thomas Co .for $6,000, terms 2/10, n/30, Invoice No. 248. Cost of the goods sold was $3,700.
20 Made cash payment in full to Baker Co. for the August 5 purchase, Check No 760.
20 Sold merchandise on credit to Fox Co. for $4,000, terms 2/10, n/30, Invoice No. 249. Cost of the goods sold was $2,000.
22 Sold merchandise on credit to Thomas Co. for $4,000, terms 2/10, n/30, Invoice No. 250. Cost of the goods sold is $2,200.
25 Received full payment less discount from Fox Co. for Aug.15 sale.
28 Recorded cash sales for the month $6,000. The cost of the goods sold was $3,000.
29 Paid Telephone Bill for August of $1.000, Check No. 761.
Paid Salaries of $500 each to 3 employees Checks 762, 763, 764.
30 Issued Check # 765 for $5,200 ($5,000 note payable and $200 interest expense)