Problem Solving Survival Guide to accompany Financial Accounting, 8th Edition

EXERCISE F-5

Purpose: (L.O. 2) This exercise will allow you to practice recording transactions in the sales journal and the cash receipts journal.

PW Company's chart of accounts includes the following selected accounts:

PW Company has four customers. The following balances appeared in PW Company's accounts receivable subsidiary ledger at July 1, 2014:

PW Company uses a perpetual inventory system. A list of selected transactions for July 2014 for PW Company follows. The sales journal and the cash receipts journal follow that list.

Transactions

July 3	Sold merchandise to Charlie Daly for $100 on account; terms 2/10, n/30, Invoice No. 240. The cost of the merchandise sold was $60.
5	Sold merchandise to Charlie Calhoun for $150 cash. Cost was $90.
6	Sold merchandise to Jan Larson for $80 on account; terms n/30, Invoice No. 241. Cost was $60.
10	Sold merchandise to Charlie Daly for $50 cash. Cost was $30.
11	Sold merchandise to Bill Jackson for $200 on account; terms 2/10, n/30, Invoice No. 242. Cost was $140
12	Collected $98 from Charlie Daly for the July 3 transaction.
13	Sold merchandise to Jan Larson for $630 on credit; terms n/30, Invoice No. 243. Cost was $315
14	Sold merchandise to Bill Jackson for $350 on account; terms 2/10, n/30, Invoice No. 244. Cost was $210. ...