problem 7-4a the cost of all merchandise sold was 60% of the

Problem 7-4A
The cost of all merchandise sold was 60% of the sales price. During January, Ayoade completed the following transactions.

Jan. 3 Purchased merchandise on account from Parkinson Co. $11,000.
4 Purchased supplies for cash $71.
4 Sold merchandise on account to Douglas $5,030, invoice no. 371, terms 1/10, n/30.
5 Returned $200 worth of damaged goods purchased on account from Parkinson Co. on January 3.
6 Made cash sales for the week totaling $3,250.
8 Purchased merchandise on account from Denholm Co. $5,300.
9 Sold merchandise on account to Connor Corp. $5,700, invoice no. 372, terms 1/10, n/30.
11 Purchased merchandise on account from Betz Co. $3,530.
13 Paid in full Parkinson Co. on account less a 2% discount.
13 Made cash sales for the week totaling $5,790.
15 Received payment from Connor Corp. for invoice no. 372.
15 Paid semi-monthly salaries of $14,505 to employees.
17 Received payment from Douglas for invoice no. 371.
17 Sold merchandise on account to Bullock Co. $2,430, invoice no. 373, terms 1/10, n/30.
19 Purchased equipment on account from Murphy Corp. $5,407.
20 Cash sales for the week totaled $2,890.
20 Paid in full Denholm Co. on account less a 2% discount.
23 Purchased merchandise on account from Parkinson Co. $7,477.
24 Purchased merchandise on account from Forgetta Corp. $4,684.
27 Made cash sales for the week totaling $4,210.
30 Received payment from Bullock Co. for invoice no. 373.
31 Paid semi-monthly salaries of $12,063 to employees.
31 Sold merchandise on account to Douglas $9,730, invoice no. 374, terms 1/10, n/30.

Ayoade Company uses the following journals.

Sales journal.
Single-column purchases journal.
Cash receipts journal.
Cash payments journal.
General journal.

Using the selected accounts provided:

Record and Post the January transactions in the appropriate journal noted. Foot and crossfoot all special journals. (Record entries in the order displayed in the problem statement.)

Sales Journal


Account Debited

Invoice No.


Accounts Receivable Dr.
Sales Revenue Cr.

Cost of Goods Sold Dr.
Inventory Cr.



Purchases Journal




Inventory Dr.
Accounts Payable Cr.


(Credit account titles are automatically indented when amount is entered. Do not indent manually.)


Account Titles and Explanation



Cash Receipts Journal


Account Credited


Cash Dr.

Sales Discounts Dr.

Accounts Receivable Cr.

Sales Revenue Cr.

Other Accounts Cr.

Cost of Goods Sold Dr.
Inventory Cr.







Cash Payments Journal



Other Accounts Dr.

Accounts Payable Dr.

Inventory Cr.

Cash Cr.





Click here if you would like to Show Work for this question

Link to Text
Link to Text
Link To Media

Question Attempts: 0 of 3 used
Save for later

Submit Answer

Copyright © 2000-2013 by John Wiley & Sons, Inc. or related companies. All rights reserved.

Tooltip JS-control [id=_intjsTooltip_1_]

US Custom Writers
Calculate your paper price
Pages (550 words)
Approximate price: -

Why Work with Us

Top Quality and Well-Researched Papers

We always make sure that writers follow all your instructions precisely. You can choose your academic level: high school, college/university or professional, and we will assign a writer who has a respective degree.

Professional and Experienced Academic Writers

We have a team of professional writers with experience in academic and business writing. Many are native speakers and able to perform any task for which you need help.

Free Unlimited Revisions

If you think we missed something, send your order for a free revision. You have 10 days to submit the order for review after you have received the final document. You can do this yourself after logging into your personal account or by contacting our support.

Prompt Delivery and 100% Money-Back-Guarantee

All papers are always delivered on time. In case we need more time to master your paper, we may contact you regarding the deadline extension. In case you cannot provide us with more time, a 100% refund is guaranteed.

Original & Confidential

We use several writing tools checks to ensure that all documents you receive are free from plagiarism. Our editors carefully review all quotations in the text. We also promise maximum confidentiality in all of our services.

24/7 Customer Support

Our support agents are available 24 hours a day 7 days a week and committed to providing you with the best customer experience. Get in touch whenever you need any assistance.

Try it now!

Calculate the price of your order

Total price:

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

No need to work on your paper at night. Sleep tight, we will cover your back. We offer all kinds of writing services.


Essay Writing Service

No matter what kind of academic paper you need and how urgent you need it, you are welcome to choose your academic level and the type of your paper at an affordable price. We take care of all your paper needs and give a 24/7 customer care support system.


Admission Essays & Business Writing Help

An admission essay is an essay or other written statement by a candidate, often a potential student enrolling in a college, university, or graduate school. You can be rest assurred that through our service we will write the best admission essay for you.


Editing Support

Our academic writers and editors make the necessary changes to your paper so that it is polished. We also format your document by correctly quoting the sources and creating reference lists in the formats APA, Harvard, MLA, Chicago / Turabian.


Revision Support

If you think your paper could be improved, you can request a review. In this case, your paper will be checked by the writer or assigned to an editor. You can use this option as many times as you see fit. This is free because we want you to be completely satisfied with the service offered.