Selected accounts from the chart of accounts of Conley Company are shown below.

101 Cash

112 Accounts Receivable

120 Inventory

126 Supplies

140 Land

145 Building

201 Accounts Payable

401 Sales Revenue

414 Sales Discounts

505 Cost of Goods Sold

610 Advertising Expense

The cost of all merchandise sold was 65% of the sales price. During October, Conley Company completed the following transactions.

Oct. 2 Purchased merchandise on account from Kent Company $15,000.

4 Sold merchandise on account to Doumit Co. $5,600. Invoice no. 204, terms 2/10, n/30.

5 Purchased supplies for cash $60.

7 Made cash sales for the week totaling $6,700.

9 Paid in full the amount owed Kent Company less a 2% discount.

10 Purchased merchandise on account from Wrigley Corp. $2,600.

12 Received payment from Doumit Co. for invoice no. 204.

13 Returned $150 worth of damaged goods purchased on account from Wrigley Corp. on October 10.

14 Made cash sales for the week totaling $6,000.

16 Sold a parcel of land for $20,000 cash, the land’s original cost.

17 Sold merchandise on account to JR’s Warehouse $4,900, invoice no. 205, terms 2/10, n/30.

18 Purchased merchandise for cash $1,600.

21 Made cash sales for the week totaling $6,000.

23 Paid in full the amount owed Wrigley Corp. for the goods kept (no discount).

25 Purchased supplies on account from Francisco Co. $190.

25 Sold merchandise on account to Fryer Corp. $3,800, invoice no. 206, terms 2/10, n/30.

25 Received payment from JR’s Warehouse for invoice no. 205.

26 Purchased for cash a small parcel of land and a building on the land to use as a storage facility. The total cost of $26,000 was allocated $16,000 to the land and $10,000 to the building.

27 Purchased merchandise on account from Marte Co. $6,200.

28 Made cash sales for the week totaling $5,500.

30 Purchased merchandise on account from Kent Company $10,000.

30 Paid advertising bill for the month from the Gazette, $290.

30 Sold merchandise on account to JR’s Warehouse $3,400, invoice no. 207, terms 2/10, n/30.

Conley Company uses the following journals.

1. Sales journal.

2. Single-column purchases journal.

3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.

4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr.,

Inventory Cr., and Cash Cr.

5. General journal.

Instructions

Using the selected accounts provided:

(a) Record the October transactions in the appropriate journals.

(b) Foot and cross-foot all special journals.

(c) Show how postings would be made by placing ledger account numbers and check marks as needed in the journals. (Actual posting to ledger accounts is not required.)