Patel Rug Company had the following credit sales transactions during March 2008:
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Patel Rug Company had the following credit sales transactions during March 2008:
Date
Customer
Quantity
Rug Style
Sales
Mar.
3
Samantha McGill
1
10 by 8 Chinese
$14,750
8
L. Smith
1
8 by 12 Persian
10,000
19
Paula Larkin
1
8 by 10 Indian
11,500
26
Amy Pugh
1
10 by 12 Persian
21,000
The March 1 inventory was $26,000, consisting of:
Quantity
Style
Cost per Rug
Total Cost
2
10 by 8 Chinese
$7,500
$15,000
2
8 by 12 Persian
$5,500
11,000
During March, Patel Rug Company purchased the following rugs from Lee Rug Importers:
Date
Quantity
Rug Style
Cost per Rug
Amount
Mar. 10
2
8 by 10 Indian
$ 6,000
$12,000
12
1
10 by 8 Chinese
10,500
10,500
21
3
10 by 12 Persian
16,500
49,500
The general ledger includes the following accounts:
Account
Number
Account
11
Accounts Receivable
12
Merchandise Inventory
21
Accounts Payable
41
Sales
51
Cost of Merchandise Sold
a. Record the sales in a two-column sales journal. Use the sales journal form shown in 1 at the end of this chapter. Begin with Invoice No. 80.
b. Record the purchases in a purchases journal. Use the purchases journal form shown in Appendix 1 at the end of this chapter.
c. Assume that you have posted the journal entries to the appropriate ledgers. Insert the correct posting references in the sales and purchases journals.
d. Determine the March 31 balance of Merchandise Inventory.
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