1. Open the general ledger accounts and accounts payable ledger accounts indicated below. Enter the balances as of August 1, 20X1.
2. Post the entries in Problem 8.4B to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger.
3. Prepare a schedule of accounts payable at August 31, 20X1.

Data from in Problem 8.4B

Dental Supplies, Inc., is a wholesale supplier of dental supplies and materials that commenced business on August 1, 20X1. The company purchases merchandise for cash and on open account. In August 20X1, Dental Supplies, Inc., engaged in the following purchasing and cash payment activities:

GENERAL LEDGER ACCOUNTS

ACCOUNTS PAYABLE LEDGER ACCOUNTS

Brown Dental Corporation
Dental Concepts
Surgical Supplies

Analyze: 

What amount did Dental Supplies, Inc., owe to its supplier, Dental Concepts, on August 31?

Transcribed Image Text:

DATE 20X1 Aug. 1 2 5 10 10 11 14 15 20 24 30 TRANSACTIONS Issued Check 101 to purchase merchandise, $2,500. Purchased merchandise for $2,200 from Brown Dental Corporation, Invoice 866; terms 1/10, n/30. Purchased merchandise for $3,900, plus a freight charge of $100, from Dental Concepts, Invoice 2111; terms 2/10, n/30. Paid amount due to Brown Dental Corporation for purchase of August 2, less discount, Check 102. Received Credit Memorandum 272 from Dental Concepts for damaged merchandise totaling $300 that was returned; the goods were purchased on Invoice 2111, dated August 5. Purchased merchandise for $1,700 from Brown Dental Corporation, Invoice 898; terms 1/10, n/30. Paid amount due to Dental Concepts for Invoice 2111 of April 5, less the return of August 10 and less the cash discount, Check 103. Purchased merchandise with a list price of $4,000 and trade discounts of 20 percent and 10 percent from Surgical Supplies, Invoice 1902, terms n/30. Issued Check 104 to purchase merchandise, $1,900. Returned merchandise purchased on August 20 as defective, receiving a cash refund of $175. Purchased merchandise for $2,125, plus a freight charge of $75, from Dental Concepts, Invoice 2285; terms 2/10, n/30.