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CHART OF ACCOUNTS
Essex Company
General Ledger
ASSETS 110 Cash 121 Accounts Receivable-Parsley Co. 122 Accounts Receivable-Tabor Co. 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 211 Accounts Payable-Hamling Co. 212 Accounts Payable-Kester Co. 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends 313 Income Summary	REVENUE 410 Sales 610 Interest Revenue EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 524 Depreciation Expense-Store Equipment 525 Depreciation Expense-Office Equipment 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534 Store Supplies Expense 535 Office Supplies Expense 536 Credit Card Expense 539 Miscellaneous Expense 710 Interest Expense

The following were selected from among the transactions completed by Essex Company during July of the current year: 3 Purchased merchandise on account from Hamling Co., list price $72,000, trade discount July 15%, terms FOB shipping point, 2/10, n/30, with prepaid freight of $1,450 added to the invoice 5 Purchased merchandise on account from Kester Co., $33,450, terms FOB destination, 2/10, n/30. 6 Sold merchandise on account to Parsley Co., $36,000, terms n/15. The cost of the merchandise sold was $25,000 7 Returned $6,850 of merchandise purchased on July 5 from Kester Co. 13 Paid Hamling Co. on account for purchase of July 3 15 Paid Kester Co. on account for purchase of July 5, less return of July 7

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