Myrina Rug Company had the following credit sales transactions during August 2006:

The August 1 inventory was $19,000, consisting of:

During August, Myrina Rug Company purchased the following rugs from Draco Rug
Importers:

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 the appendix at the end of this chapter. Begin with Invoice Number 80.
b. Record the purchases in a purchases journal. Use the purchases journal form shown in the appendix 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 August 31 balance of MerchandiseInventory.

Transcribed Image Text:

Date Customer Quantity Rug Style Sales Aug. 3 Adrienne Richt 8 K. Smith 19 L. Lao 26 Cheryl Pugh 10 by 6 Chinese $12,000 8 by 10 Persian 8 by 10 Indian 10 by 12 Persan 14, 10,000 9,000 Style 10 by 6 Chinese 8 by 10 Persian Quantity Cost per Rug Total Cost $4,000 5,500 8,000 11,000 Date Quantity Rug Style Cost per Rug $4,000 3,500 6,500 Amount Aug. 10 12 21 8 by 10 Indian 10 by 6 Chinese 10 by 12 Persian 8,000 3,500 19,500 2