Copyright

Some of the transactions of Kingbird Company during August are listed below. Kingbird uses the...

Question:

Some of the transactions of Kingbird Company during August are listed below. Kingbird uses the periodic inventory method.

August 10 Purchased merchandise on account, $10,700, terms 2/10, n/30.
13 Returned part of the purchase of August 10, $1,300, and received credit on account.
15 Purchased merchandise on account, $14,800, terms 1/ 10, n/60.
25 Purchased merchandise on account, $18,900, terms 2/10, n/30
28 Paid invoice of August 15 in full

Assuming that purchases are recorded at gross amounts and that discounts are to be recorded when taken prepare general journal entries to record the transactions.

What Are Accounts Payable:

Accounts Payable are reported as a current liability on the balance sheet. It reflects the amounts payable to suppliers for day to day operational purchases, for instance the purchasing of inventory on account.

Answer and Explanation: 1

Become a Study.com member to unlock this answer!

View this answer

August 10:

AccountDrCr
Inventory10,700
Accounts payable 10,700

August 13:

AccountDrCr
Accounts payable1,300
Inventory 1,300

August 15:

AccountDr...

See full answer below.


Learn more about this topic:

Loading...
What Are Accounts Payable? - Definition & Examples

from

Chapter 1 / Lesson 21
40K

Learn what accounts payable is by definition and its examples. Classify if it is an asset or a liability and be informed with the formula on how to calculate it.


Related to this Question

Explore our homework questions and answers library