Question

Journalize the entries for transactions done by Nichole Smith Co. during March of the current year: 1. Sold merchandise on account to ABC Co. $33,450, terms FOB shipping point, n/eom. The cost of merchandise sold was $20,000. 2. Sold merchandise for $86,000 plus 8% sales tax to retail cash customers.The cost of merchandise sold was $51,600. 3. Sold merchandise to peacock Co, $17,500, terms FOB destination ,1/10,n/30.The cost of merchandise sold was $10,000. 4. Sold merchandise for $112,000 plus 8% sales tax to retail customers who used VISA cards.The cost of merchandise sold was $67,200. 5. Received check for amount due from Peacock Co. for sale on (3). 6. Paid $ 41,260 to state sales division for taxes owed on sales.

Answer 1

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