1. Prepare headings for a sales journal. Journalize the transactions that should be recorded in the sales journal. Assume the company uses the perpetual inventory system.

2. Total each column of the sales journal.

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Feb. 1 6 12 15 20 22 26 28 Sold merchandise inventory on account, terms n/30, to Cole Co., $1,050. Cost of goods, $860. Invoice no. 401. Sold merchandise inventory for cash, $950 (cost, $750). Collected interest revenue of $170. Received cash from Cole Co. in full settlement of its account receivable. Sold merchandise inventory on account, terms n/30, to Dump Co., issuing invoice no. 402 for $500 (cost, $325). Sold merchandise inventory for cash, $600 (cost $530). Sold office supplies to an employee for cash of $150. Received $500 from Dump Co. in full settlement of its account receivable.