Tall Trees Company uses a perpetual inventory system and four special journals: Purchases, Sales, Cash Receipts,...

 

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Tall Trees Company uses a perpetual inventory system and four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August Aug. 1 Purchased merchandise from Pine Co. for $2,000, terms 2/10, n/30. Aug. 4 Sold merchandise on credit to Timber Co. for $2,800, terms 2/10, n/30, Invoice No. 245. Cost of merchandise was $1,500. Aug. 5 Sold merchandise on credit to Ash Corp. for $4,600, terms 2/10, n/30, Invoice No. 246. Cost of merchandise was $2,000. Aug. 7 Paid salaries accrued on July 31, $1,100 to manager Lumber Jack, Cheque No. 756. Aug. 9 Returned merchandise costing $1,200 to Pine Co. from Aug. 1 purchase. Aug. 11 Paid Pine Co. for the Aug. 1 purchase, Cheque No. 758 Aug. 11 Accepted merchandise returned by Timber Co. from Aug. 4 sale. Issued credit memorandum for $400. Aug. 16 Received payment from Timber Co. for Aug. 4 sale, less the return. Aug. 19 Received payment in full from Ash Corp. for the Aug. 5 sale. Aug. 28 Recorded cash sales for the month, $8,500. Cost of merchandise was $3,800. Aug. 29 Paid monthly phone bill $650, Cheque No. 762. Required: Record the above transactions in the Sales and Cash Receipts journals below. Ignore any transactions that should not be posted to these journals provided. Tall Trees Company uses a perpetual inventory system and four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August Aug. 1 Purchased merchandise from Pine Co. for $2,000, terms 2/10, n/30. Aug. 4 Sold merchandise on credit to Timber Co. for $2,800, terms 2/10, n/30, Invoice No. 245. Cost of merchandise was $1,500. Aug. 5 Sold merchandise on credit to Ash Corp. for $4,600, terms 2/10, n/30, Invoice No. 246. Cost of merchandise was $2,000. Aug. 7 Paid salaries accrued on July 31, $1,100 to manager Lumber Jack, Cheque No. 756. Aug. 9 Returned merchandise costing $1,200 to Pine Co. from Aug. 1 purchase. Aug. 11 Paid Pine Co. for the Aug. 1 purchase, Cheque No. 758 Aug. 11 Accepted merchandise returned by Timber Co. from Aug. 4 sale. Issued credit memorandum for $400. Aug. 16 Received payment from Timber Co. for Aug. 4 sale, less the return. Aug. 19 Received payment in full from Ash Corp. for the Aug. 5 sale. Aug. 28 Recorded cash sales for the month, $8,500. Cost of merchandise was $3,800. Aug. 29 Paid monthly phone bill $650, Cheque No. 762. Required: Record the above transactions in the Sales and Cash Receipts journals below. Ignore any transactions that should not be posted to these journals provided.

Answer rating: 100% (QA)

Date 04Aug Timber Co 05Aug Ash Corp Date Sales Journal Account Debited Invoice No PR 245 2... View the full answer