Question

Post Pharmacy uses the following journals: sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. On June 5, Post purchased merchandise priced at $ 14,000, subject to credit terms of 2/10, n/30. On June 14, the pharmacy paid the net amount due for the merchandise. In journalizing the payment, the pharmacy debited Accounts Payable for $ 14,000 but failed to record the cash discount on the purchases. Cash was properly credited for the actual $ 13,720 paid.
(a) In what journals would the June 5 and the June 14 transactions be recorded?
(b) What procedure is likely to discover the error in journalizing the June 14 transaction?



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  • CreatedNovember 26, 2013
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