Journal Entries for Merchandising Transactions Shown Below Is a Partial

question 61

Essay

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.

---

Definitions:

Caribbean

A geographic region consisting of the Caribbean Sea, its islands, and the surrounding coasts, known for its distinct cultural, historical, and political identities.

Influx

An arrival or entry of large numbers of people or things.

Africans

Refers to the people native to the continent of Africa, encompassing a vast diversity of ethnicities, cultures, and languages.

Mexico

A country in North America, bordered by the United States to the north, and Guatemala and Belize to the south, known for its rich cultural heritage, diverse landscapes, and history.