Digital World is a retail store that sells cameras and photography supplies. The firms credit purchases and purchases returns and allowances transactions for June 20X1 appear below, along with the general ledger accounts used to record these transactions. The balance shown in Accounts Payable is for the beginning of June.

GENERAL LEDGER ACCOUNTS
205	Accounts payable, $13,404 Cr.
501	Purchases
502	Freight In
503	Purchases returns and allowances

DATE	TRANSACTIONS
June	1		Purchased instant cameras for $1,850 plus a freight charge of $130 from Pro Photo Equipment, Invoice 4241, dated May 27; the terms are 60 days net.
	8		Purchased film for $1,374 from Photo Supplies, Invoice 1102, dated June 3, net payable in 45 days.
	12		Purchased lenses for $896 from Nano Glass, Invoice 7282, dated June 9; the terms are 1/10, n/60.
	18		Received Credit Memorandum 110 for $300 from Pro Photo Equipment for defective cameras that were returned; they were originally purchased on Invoice 4241, dated May 27.
	20		Purchased color film for $1,000 plus freight of $55 from Photo Supplies, Invoice 1148, dated June 15, net payable in 45 days.
	23		Purchased camera cases for $1,936 from Hi-Qual Case, Invoice 3108, dated June 18, net due and payable in 45 days.
	28		Purchased lens filters for $2,270 plus freight of $100 from Holtz Spectrum, Invoice 5027, dated June 24; the terms are 2/10, n/30.
	30		Received Credit Memorandum 1108 for $210 from Hi-Qual Case; the amount is an allowance for damaged but usable goods purchased on Invoice 3108, dated June 18.

Creditors
Name	Terms	Balance
Photo Supplies		n/45		$	10,380
Hi-Qual Case		n/45			1,100
Pro Photo Equipment		n/60
Nano Glass		1/10, n/60			1,924
Holtz Spectrum		2/10, n/30

Required:

1. Set up an accounts payable subsidiary ledger for Digital World. Enter the balances as of June 1, 20X1 for each of the creditors.
2. Post the opening balances and transactions from the purchases journal and the general journal.
3. Prepare a schedule of accounts payable for June 30.
4. Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.

Analyze: What amount is owed to Nano Glass on June 30?

Transcribed Image Text:

ems i Required information Saved Ledgers Purchases Journal General Journal Schedule of AP Analyze Post the opening balances and transactions from the purchases journal and the general journal. Hi-Qual Case Terms n/45 Date Debit Credit Balance June 01, 20X1 Holtz Spectrum Terms 2/10, n/30 Date Debit Credit Balance Nano Glass Terms 1/10, n/60 Photo Supplies Terms n/45 Date Debit Credit Balance Date Debit Credit Balance June 01, 20X1 June 01, 20X1 Pro Photo Equipment Date Debit Credit Terms n/60 Balance < Ledgers S < Prev 3 of 5 MacBook Air Purchases Journal > Next > ems i Required information Saved Ledgers Purchases Journal General Journal Schedule of AP Analyze Post the opening balances and transactions from the purchases journal and the general journal. Hi-Qual Case Terms n/45 Date Debit Credit Balance June 01, 20X1 Holtz Spectrum Terms 2/10, n/30 Date Debit Credit Balance Nano Glass Terms 1/10, n/60 Photo Supplies Terms n/45 Date Debit Credit Balance Date Debit Credit Balance June 01, 20X1 June 01, 20X1 Pro Photo Equipment Date Debit Credit Terms n/60 Balance < Ledgers S < Prev 3 of 5 MacBook Air Purchases Journal > Next >