Selected accounts from the chart of accounts of Meng Enterprises are shown below.
The cost of all merchandise sold was 60% of the sales price. During January, Meng completed the following transactions (amounts in thousands).
Meng uses the following journals.
1. Sales journal.
2. Single-column purchases journal.
3. Cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr.
4. Cash payments journal with columns for Other Accounts Dr., Accounts Payable Dr., Inventory Cr., and Cash Cr.
5. General journal.
Instructions
Using the selected accounts provided:
a. Record the January transactions in the appropriate journal noted.
b. Foot and cross-foot all special journals.
c. Show how postings would be made by placing ledger account numbers and checkmarks as needed in the journals. (Actual posting to ledger accounts is not required.)
