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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Identifying Journals Used to Record Purchases and Related Transactions.Â
The following transactions took place at Serene Hills Hike and Bike Shop. Indicate the general ledger account numbers that would be debited and credited to record each transaction.Â
General Ledger Accounts:Â
101 CashÂ
205 Accounts PayableÂ
501 PurchasesÂ
502 Freight InÂ
503 Purchases, Returns and AllowancesÂ
TransactionsÂ
1. Purchased merchandise for $1500; the terms are 2/10, n/30Â
2. Returned damaged merchandise to a supplier and received a credit memorandum for $300Â
3. Issued a check for $800 to a supplier as a payment on accountÂ
4. Purchased merchandise for $2400 plus a freight charge of $260; the supplier’s invoice is payable in 30 daysÂ
5. Received an allowance for merchandise that was damaged but can be sold at a reduced price; the supplier’s credit memorandum is for $400Â
6. Purchased merchandise for $4200 in cash.
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