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

ID: 2543075 • Letter: 2

Question

20 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 12 points Nov.3 n/20 The company purchased $3,000 of merchandise on credit from Hart Co., terms 7 The company sold merchandise costing $792 on credit to J. Than for $870 subject to an $17 sales discount if paid by the end of the month. 9 The company borrowed $3,025 cash by signing a note payable to the bank. 13 J. Ali, the owner, contributed $4,325 cash to the company 18 The company sold merchandise costing $126 to B. Cox for $224 cash. eBook The company paid Hart Co. $3,000 cash for the merchandise purchased on November 3. The company received $853 cash from J. Than in payment of the November 7 purchase. Hint 27 30 The company paid salaries of $1,500 in cash. References Journalize the November transactions that should be recorded in the cash receipts journal assuming the perpetual inventory system is used CASH RECEIPTS JOURNAL Accounts Receivable. Sales Cr Other Accounts Cr. Cost of Goods Sold Dr Account Date CreditedCash Dr.Sales Discount Dr. ov. 09 ov. 13 J. Ali, Capital ov. 18 ov, 27 J. Than otes payable ales

Explanation / Answer

Cash Receipt Journal ( Amount in $)

Date

Account Credited

Cash Dr

Sales Discount Dr.

Account Receivable Cr.

Sales Cr.

Other Accounts Cr.

COGS Dr. Inventory Cr

Nov-09

Notes Payable

3025

Nov-13

J Ali. Capital

4325

Nov-18

Sales

224

126

Nov-27

J.Than

853

870