Question

The following selected transactions were completed by Vancouver Island Irrigation Co., which sells irrigation supplies primarily to wholesalers and occasionally to retail customers:
Aug. 1. Sold merchandise on account to Fir Co., $12,500, terms FOB shipping point, n/eom. The cost of goods sold was $7,500.
2. Sold merchandise for $20,000 to retail cash customers. The cost of goods sold was $13,100.
13. Sold merchandise to customers who used MasterCard, $8,000. The cost of goods sold was $5,000.
18. Sold merchandise on account to Horton Company, $6,850, terms FOB shipping point, 2/10, n/30. Paid $210 for freight and added it to the invoice. The cost of goods sold was $4,100.
28. Received cheque for amount due from Horton Company for sale of August 18.
31. Paid Piper Delivery Service $2,100 for merchandise delivered during August to customers under shipping terms of FOB destination.
31. Received cheque for amount due from Fir Co. for sale of August 1.
Sep. 3. Paid bank $980 for service fees for handling MasterCard sales during August.
Instructions
Journalize the entries to record the transactions of Vancouver Island Irrigation Co., assuming the use of the perpetual inventory system.


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  • CreatedSeptember 15, 2015
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