The following were selected from among the transactions completed by Essex Company during July of the current year:
July 3. Purchased merchandise on account from Hamling Co., list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.
5. Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30.
6. Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000.
7. Returned $6,850 of merchandise purchased on July 5 from Kester Co.
13. Paid Hamling Co. on account for purchase of July 3.
15. Paid Kester Co. on account for purchase of July 5, less return of July 7.
21. Received cash on account from sale of July 6 to Parsley Co.
21. Sold merchandise on MasterCard, $108,000. The cost of the merchandise sold was $64,800.
22. Sold merchandise on account to Tabor Co., $16,650, terms 2/10, n/30. The cost of the merchandise sold was $10,000.
23. Sold merchandise for cash, $91,200. The cost of the merchandise sold was $55,000.
28. Paid Parsley Co. a cash refund of $7,150 for returned merchandise from sale of July 6. The cost of the returned merchandise was $4,250.
31. Paid MasterCard service fee of $1,650.
Required:

Journalize the entries to record the transactions of Essex Company for July using the periodic inventory system.

For a compound transaction, if an amount box does not require an entry, leave it blank.

To record purchase of goods with a list price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.

July 5. Debit Purchases $33,450

Credit Accounts Payable (Kester Co.) $33,450

To record purchase of goods on terms FOB destination, 2/10, n/30.

July 6. Debit Accounts Receivable (Parsley Co.) $36,000

Credit Sales Revenue $36,000

To record sale of goods on terms n/15.

July 7. Debit Accounts Payable (Kester Co.) $6,850

Credit Purchases Returns $6,850

To record purchases returns.

July 13. Debit Accounts Payable (Hamling Co.) $62,650

Credit Cash $61,426

Credit Cash Discounts $1,224 ($61,200 x 2%)

To record payment on account and discounts.

July 15. Debit Accounts Payable (Kester Co.) $26,600

Credit Cash $26,068

Credit Cash Discounts $532 ($26,600 x 2%)

To record payment in full plus discounts.

July 21. Debit Cash $36,000

Credit Accounts Receivable (Parsley Co.) $36,000

To record cash sales.

July 21. Debit Cash (MasterCard) $108,000

Credit Sales Revenue $108,000

To record sales on MasterCard.

July 22. Debit Accounts Receivable (Tabor Co.) $16,650

Credit Sales Revenue $16,650

To record sales on terms 2/10, n/30. The cost of the merchandise sold was $10,000.

July 23. Debit Cash $91,200

Credit Sales Revenue $91,200

To record cash sales.

July 28. Debit Sales Allowances $7,150

Credit Cash (Parsley Co.) $7,150

To record the sales refund.

July 31. Debit MasterCard service fee $1,650

Credit Cash $1,650

To record service fee payment.

Data Analysis:

July 3. Purchases $61,200 Freight-in Expenses $1,450 Accounts Payable (Hamling Co.) $62,650

List price $72,000, trade discount 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice.

July 5. Purchases $33,450 Accounts Payable (Kester Co.) $33,450

terms FOB destination, 2/10, n/30.

July 6. Accounts Receivable (Parsley Co.) $36,000 Sales Revenue $36,000

terms n/15.

The cost of the merchandise sold was $25,000.

July 7. Accounts Payable (Kester Co.) $6,850 Purchases Returns $6,850

July 13. Accounts Payable (Hamling Co.) $62,650 Cash $61,426 Cash Discounts $1,224 ($61,200 x 2%)

July 15. Accounts Payable (Kester Co.) $26,600 Cash $26,068 Cash Discounts $532 ($26,600 x 2%)

July 21. Cash $36,000 Accounts Receivable (Parsley Co.) $36,000

July 21. Cash (MasterCard) $108,000 Sales Revenue $108,000

The cost of the merchandise sold was $64,800.

July 22. Accounts Receivable (Tabor Co.) $16,650 Sales Revenue $16,650

terms 2/10, n/30. The cost of the merchandise sold was $10,000.

July 23. Cash $91,200 Sales Revenue $91,200

The cost of the merchandise sold was $55,000.

July 28. Sales Allowances $7,150

Cash (Parsley Co.) $7,150

The cost of the returned merchandise was $4,250.

July 31. MasterCard service fee $1,650 Cash $1,650

Thus, the journal entries have been recorded for July transactions for the Essex Company based on the periodic inventory system.

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