Preston Company sells candy wholesale primarily to

vending machine operators

Preston Company sells candy wholesale, primarily to vending machine operators. Terms of
sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash
receipts and sales of merchandise took place in May of this year: May 1 Received $ 2,156 cash
from L. Reilly in payment of April 22 invoice of $ 2,200, less cash discount. 4 Received $ 1,096
cash in payment of $ 1,000 note receivable and interest of $ 96. 7 Received $ 588 cash from K.
L. Shannon in payment of April 29 invoice of $ 600, less cash discount. 8 Sold merchandise on
account to D. Padilla, invoice no. 272, $ 489. 16 Cash sales for first half of May, $ 2,265. 17
Received cash from D. Padilla in payment of invoice no. 272, less cash discount. 20 Received $
325 cash from L. N. Salas in payment of April 16 invoice, no discount. 21 Sold merchandise on
account to R. O. Wilcox, invoice no. 273, $ 935. 24 Received $ 220 cash refund for return of
defective equipment that was originally bought for cash. 27 Sold merchandise on account to R.
Jarvis, invoice no. 274, $ 450. 31 Cash sales for second half of May, $ 2,845. Required 1.
Journalize the transactions for May in the cash receipts journal and the sales journal. Assume
the periodic inventory method is used. 2. Total and rule the journals. 3. Prove the equality of the
debit and credit totals.View Solution: Preston Company sells candy wholesale primarily to
vending machine operators
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