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In May the following selected transactions were completed. All purchases and sales were on...

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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.

Special Journals

  1. General Journal - records all transactions.
  2. Cash Receipts Journals - records all transactions of cash receipts.
  3. Cash Disbursement Journals - records all transactions of cash payments.
  4. Sales Journals - records all transactions of sales made on the account.
  5. Purchase Journals - records all transactions of purchases made on the account.

Answer and Explanation: 1

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Purchase Journal

Date Vendors Accounts Payable Merchandise Inventory Supplies
Purchases Freight-...

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Purchases Journal: Definition & Example

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Chapter 1 / Lesson 22
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Explore purchase journals in accounting. Learn the definition of a purchase journal and understand its different entries. Discover purchase journal examples.


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