Question

The Marchetti Soup Company entered into the following transactions during the month of June:_________.
(a) purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system);
(b) paid $60,000 in salaries to employees for work performed during the month;
(c) sold merchandise that cost $160,000 to credit customers for $300,000;
(d) collected $280,000 in cash from credit customers; and
(e) paid suppliers of inventory $225,000.
Prepare journal entries for each of the above transactions. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field.)
1. Purchased inventory on account for $245,000 (assume Marchetti uses a perpetual inventory system)
2. Paid $60,000 in salaries to employees for work performed during the month
3. Sold merchandise to customers for $300,000
4. Merchandise that was sold cost $160,000
5.Collected $280,000 in cash from credit customers
6.Paid suppliers of inventory $225,000

Answer 1

Answer: Please find answers in the explanation column

Explanation:

a.) journal entry to record  purchase of inventory on account by the company

Date            Accounts                                 Debit               Credit

June                      Inventory                   $245,000

          Accounts payable                                                  $245,000

b.) journal entry to record  for the payment of salaries to the employees

Date            Accounts                                     Debit               Credit

June        Salaries and wages expenses    $60,000                

         Cash                                                                               $60,000

c1.) journal entry to record  the sale of merchandise to customers

Date            Accounts                                     Debit               Credit

June         Cash                                           $300,000

            Sales Revenue                                                             $300,000

c2.) journal entry to record  the cost involved in the sale of merchandise to customers

Date            Accounts                                     Debit               Credit

June         Cost of goods sold                     $160,000                    

            inventory                                                                     $160,000

d.) journal entry to record  the cash collected from the customers

Date            Accounts                                     Debit               Credit

June         Cash                                             $280,000                

            Account receivable                                                    $280,000

e.) journal entry to record   the payment of cash to the suppliers of inventory

Date            Accounts                                     Debit               Credit

June             Account payable                   $225,000                

       Cash                                                                                $225,000