Journal entries for merchandising transactions Shown below is a partial chart of accounts for Main Street Markets, followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Sales taxes are collected on all sales, and the sales tax liability is recorded immediately. Freight charges on inbound shipments are recorded in the Transportation-in account.
$$\begin{array} { | l | l | l | l | }
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 51 & \text { Sales Discounts } \
\hline 5 & \text { Inventory } & 52 & \text { Sales Returns \& Allowances } \
\hline 30 & \text { Accounts Payable } & 60 & \text { Cost of Goods Sold } \
\hline 35 & \text { Sales Taxes Payable } & 62 & \text { Transportation-in } \
\hline 39 & \text { Income Taxes Payable } & \text { XX } & \text { All other expense account } \
\hline
\end{array}$$
Indicate the accounts that should be credited in recording each transaction by placing the appropriate account number(s) in the space provided.

Question

Journal entries for merchandising transactions Shown below is a partial chart of accounts for Main Street Markets, followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Sales taxes are collected on all sales, and the sales tax liability is recorded immediately. Freight charges on inbound shipments are recorded in the Transportation-in account.
$$\begin{array} { | l | l | l | l | } 
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 51 & \text { Sales Discounts } \
\hline 5 & \text { Inventory } & 52 & \text { Sales Returns \& Allowances } \
\hline 30 & \text { Accounts Payable } & 60 & \text { Cost of Goods Sold } \
\hline 35 & \text { Sales Taxes Payable } & 62 & \text { Transportation-in } \
\hline 39 & \text { Income Taxes Payable } & \text { XX } & \text { All other expense account } \
\hline
\end{array}$$ 
Indicate the accounts that should be credited in recording each transaction by placing the appropriate account number(s) in the space provided.

Quizplus · Accepted Answer

The Answer of Journal entries for merchandising transactions Shown below is a partial chart of accounts for Main Street Markets, followed by a series of merchandising transactions. The company uses a perpetual inventory system, records purchases at net cost, and records sales at the full invoice price. Sales taxes are collected on all sales, and the sales tax liability is recorded immediately. Freight charges on inbound shipments are recorded in the Transportation-in account.
$$\begin{array} { | l | l | l | l | } 
\hline 1 & \text { Cash } & 50 & \text { Sales } \
\hline 2 & \text { Accounts Receivable } & 51 & \text { Sales Discounts } \
\hline 5 & \text { Inventory } & 52 & \text { Sales Returns \& Allowances } \
\hline 30 & \text { Accounts Payable } & 60 & \text { Cost of Goods Sold } \
\hline 35 & \text { Sales Taxes Payable } & 62 & \text { Transportation-in } \
\hline 39 & \text { Income Taxes Payable } & \text { XX } & \text { All other expense account } \
\hline
\end{array}$$ 
Indicate the accounts that should be credited in recording each transaction by placing the appropriate account number(s) in the space provided.

Journal Entries for Merchandising Transactions Shown Below Is a Partial