In May the following selected transactions were completed. All purchases and sales were on account except as indicated. The cost of all merchandise sold was 65% of the sales price.
|May 2||Purchased merchandise from Younger Company $7,500.|
|3||Received freight bill from Ruden Freight on Younger purchase $360.|
|5||Made sales to Ellie Company $1,980, DeShazer Bros. $2,700, and Liu Company $1,500.|
|8||Purchased merchandise from Utley Company $8,000 and Zeider Company $8,700.|
|10||Received credit on merchandise returned to Zeider Company $500.|
|15||Purchased supplies from Rodriquez Supply $900.|
|16||Purchased merchandise from Younger Company $4,500, and Utley Company $7,200.|
|17||Returned supplies to Rodriquez Supply, receiving credit $100.|
|18||Received freight bills on May 16 purchases from Ruden Freight $500.|
|20||Returned merchandise to Younger Company receiving credit $300.|
|23||Made sales to DeShazer Bros. $2,400 and to Liu Company $3,600.|
|25||Received bill for advertising from Amster Advertising $900.|
|26||Granted allowance to Liu Company for merchandise damaged in shipment $200.|
|28||Purchased equipment from Rodriquez Supply $500.|
Journalize the transactions above in a purchases journal, a sales journal, and a general journal.
- General Journal - records all transactions.
- Cash Receipts Journals - records all transactions of cash receipts.
- Cash Disbursement Journals - records all transactions of cash payments.
- Sales Journals - records all transactions of sales made on the account.
- Purchase Journals - records all transactions of purchases made on the account.
Answer and Explanation: 1
|Date||Vendors||Accounts Payable||Merchandise Inventory||Supplies|
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fromChapter 1 / Lesson 22
Explore purchase journals in accounting. Learn the definition of a purchase journal and understand its different entries. Discover purchase journal examples.