LR Company's chart of accounts includes the following selected accounts.

112 Accounts receivable 401 Sales revenue 120 Inventory 412 Sales returns and discounts 126 Supplies 505 Cost of goods sold 157 Equipment 610 Advertising expenses 201 accounts payable

In July, the following selected transactions were completed. All purchases and sales were on account. The cost of all merchandise sold was 70% of the sale price.

July 1 Purchased merchandise from Eby Company for $8,000.

2 Freight bill received from Shaw Shipping on Eby purchase of $400.

3 Made sales to Fort Company $1,300 and Hefner Bros. $1,500.

5 Merchandise purchased from Getz Company $3,200.

8 Credit received for returned merchandise to Getz Company $300.

13 Store supplies purchased from Dayne Supply $720.

15 Merchandise purchased from the Eby Company for $3,600 and the Bosco Company for $4,300.

16 Made sales to Aybar Company $3,450 and Hefner Bros. $1,870.

18 He received an advertising bill from Welton Advertisements for $600.

21 Sales were made to the Fort Company for $310 and to the Duncan Company for $2,800.

22 Allowance given to Fort Company for merchandise damaged in shipment $40.

24 Merchandise purchased from Getz Company $3,000.

26 Equipment purchased from Dayne Supply $900.

28 Freight bill received from Shaw Shipping for Getz's July 24 purchase of $380.

30 Sales were made to Aybar Company for $5,600.

Record past transactions in a purchase journal, a sales journal, and a general journal. 

The purchase journal includes date, account credited (debit), ref, accounts payable, inventory Dr., other accounts Dr.

Sales Journal is configured as:

Date, Account Debited, Ref, Accounts Receivable Dr., Sales Revenue Cr., Cost of Goods Sold Dr., Inventory Cr. credit account list

Post to both the general ledger and subledger and Verify the concordance of the control and subsidiary accounts

Answer rating: 100% (QA)

Answer IExplanation Purchase Journal Debit Credit July 1 Inventory 8000 Accounts Payable 8000 July 2 ... View the full answer