Enter the debits and credits necessary to record the following transactions ( fo
ID: 2456793 • Letter: E
Question
Enter the debits and credits necessary to record the following transactions ( for I-L, only journalize on the books of the seller)
a) cash purchase/sale of 2400 and cost of merchandise 1900
b) credit purchase/sale of 800 with credit terms of 2/10, n/30 and cost of merchandise 500.
c) return of 100 of merchandise in transaction b (cost of 40)
d) payment/reciept of amount due in transaction b within the discount period
e) payment of 200 in delivery with terms of FOB shipping point
f) pqayment of 145 in delivery with terms FOB destination
g) credit purchase/sales of 900 with perpaid delivery charges of 60 (not included int he 900) credit terms of 1/10, n/30, FOB shipping point, and cost of merchandise 500
h) payment and receipt of the amount due from transaction g beyond the discount period
i) cash sale of 200 with a sales tax of 5% and cost of 80
j) payment of 300 in sale tax to the taxing authority
k) credit card sale of 500 with a cost of 200
L) record payment of service charges on credit card sales equal to 200
Explanation / Answer
Journal In the books of purchaser:
Journal in the books of Seller:
Date Particulars Debit Credit a. Purchases 2400 Cash 2400 b. Purchases 800 Accounts payable 800 c. Accounts payable 100 Purchases 100 d. Accounts Payable 700 Cash 686 Discount (700*2%) 14 e. Purchases 200 Cash 200 f. Purchases 145 Cash 145 g. Purchases 960 Accounts payable 900 Cash 60 h. Accounts payable 960 Cash 960Related Questions
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