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.

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Definitions:

Trial Court

The level of court in which a case is first heard and evidence is presented, serving as the initial forum for legal disputes.

Civil Procedure

The body of law governing the process and procedures by which civil matters are adjudicated in the court system.

Procedural Due Process

A principle required by the Constitution that when the state or federal government acts in such a way that denies a citizen of a life, liberty, or property interest, the person must first be given notice and the opportunity to be heard.

Daimler AG

A multinational automotive corporation headquartered in Stuttgart, Germany, known for manufacturing premium vehicles under the Mercedes-Benz brand.