Post Pharmacy uses the following journals: sales journal, purchases journal, cash receipts journal, cash disbursements journal, and

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 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?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...