Ali, Co. uses a sales journal, a purchases journal, a cash receipts journal, a c

ID: 2487648 • Letter: A

Question

Ali, Co. uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of November. Nov 3 The company purchased $2,400 of merchandise on credit from Hart, Co, items n/20. 7 The company sold merchandise costing $633 on credit to J. Than for $696, subject to $14 sales discount if paid by the end of the month 9 The company barrowed $3,300 cash by signing a note payable to the bank 13 J. Ali, the owner, contributed $4,600 cash to the company 18 The company sold merchandise costing $101 to B. Cost for $l80 cash. 22 The company paid Hart Co. $2,400 cash for the merchandise purchased or November 3. 27 The company received $682 cash from J, Than in payment of the November 7 purchase 30 The company paid salaries of $1, 200 in cash. Journalize the November transactions that should be recorded in the cash receipts journal assuming the perpetual inventory system is used

Explanation / Answer

CASH RECEIPTS JOURNAL

Date

Account Credited

Explanation

Cash Dr.

Sales Discount Dr.

Accounts receivable Cr.

Sales Cr.

Other Accounts Cr.

Cost of Goods sold Dr. / Inventory Cr.

Nov. 9

Notes Payable

Note to bank

$ 3,300

J. Ali, Capital

Contribution

$ 4,600

Sales

Cash sale

$ 180

$ 101

J. Than

Invoice, 11/7

$ 682

$ 14

$ 696