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[The following information applies to the questions displayed below.]
Church Company completes these transactions and events during March of the current year (terms for all its credit sales
are 2/10, n/30).
March 1
March 2
March 3 (a)
March 3 (b)
March 6
March 9
March 10
March 12
March 13 (a)
March 13 (b)
March 14
March 15 (a)
March 15 (b)
March 16
March 17
March 19
Purchased $39,000 of merchandise from Van Industries, terms 2/15, n/30.
Sold merchandise on credit to Min Cho, Invoice Number 854, for $15,600 (cost is $7,800).
Purchased $1,170 of office supplies on credit from Gabel Company, terms n/30.
Sold merchandise on credit to Linda Witt, Invoice Number 855, for $7,800 (cost is $3,900).
Borrowed $72,000 cash from Federal Bank by signing a long-term note payable.
Purchased $19,500 of office equipment on credit from Spell Supply, terms n/30.
Sold merchandise on credit to Jovita Albany, Invoice Number 856, for $3,900 (cost is $1,950).
Received payment from Min Cho for the March 2 sale less the discount of $312.
Sent Van Industries Check Number 416 in payment of the March 1 invoice less the discount of $780.
Received payment from Linda Witt for the March 3 sale less the discount of $156.
Purchased $26,000 of merchandise from the CD Company, terms 2/10, n/30.
Issued Check Number 417 for $13,500; payee is Payroll, in payment of sales salaries expense for the first
half of the month.
Cash sales for the first half of the month are $62,400 (cost is $49,920). These cash sales are recorded
in the cash
receipts journal on March 15.
Purchased $1,690 of store supplies on credit from Gabel Company, terms n/30.
Returned $2,600 of unsatisfactory merchandise purchased on March 14 to CD Company. Church reduces
accounts
payable by that amount.
Returned $585 of office equipment purchased on March 9 to Spell Supply. Chuch reduces accounts payable