Simon Pharmacy uses the following journals: Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal, and

Question:

Simon Pharmacy uses the following journals: Sales Journal, Purchases Journal, Cash Receipts Journal, Cash Disbursements Journal, and General Journal. On June 5, Simon purchased merchandise priced at $24,000, subject to credit terms of 2/10, n/30. On June 14, the pharmacy paid the net amount due.
However, in journalizing the payment, the bookkeeper debited for $24,000 and failed to record the cash discount. Cash was credited for the actual amount paid. In what journals would the transactions of June 5 and June 14 have been recorded? 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...