Belladonna Company (buyer) and Sachi, Inc. (seller), engaged in the following transactions during February 2019: Belladonna Company

Question:

Belladonna Company (buyer) and Sachi, Inc. (seller), engaged in the following transactions during February 2019:

Belladonna Company

DATE TRANSACTIONS

2019

Feb. 8 Issued Check 2001 for $5,880 on account to Sachi, Inc., in payment of Invoice 1985 dated January 30, 2019, less cash discount of $120.

9 Purchased merchandise for $4,800 from Sachi, Inc., Invoice 1990; terms 2/10, n/30.

15 Received Credit Memorandum 220 from Sachi, Inc., for damaged merchandise totaling $400 that was returned; the goods were purchased on Invoice 1990, dated February 9.

18 Paid amount due to Sachi, Inc., for Invoice 1990 of February 9, less the return of February 15 and less the cash discount, Check 2009.

28 Purchased merchandise for $7,200 from Sachi, Inc., Invoice 2008; terms 2/10, n/30.

Sachi, Inc.

DATE TRANSACTIONS

2019

Feb. 8 Received payment of $5,880 on account from Belladonna Company in payment of Invoice 1985 dated January 30, 2019, less cash discount of $120.

9 Sold merchandise for $4,800 on account to Belladonna Company, Invoice 1990, terms 2/10, n/30.

15 Issued Credit Memorandum 220 to Belladonna Company for damaged merchandise totaling $400 that was returned; the goods were purchased on Invoice 1990, dated February 9.

18 Received payment from Belladonna Company for Invoice 1990 of February 9, less the return of February 15 and less the cash discount.

28 Sold merchandise for $7,200 to Belladonna Company, Invoice 2008; terms 2/10, n/30.

INSTRUCTIONS

1. Open the accounts payable ledger account and accounts receivable ledger account indicated below for both Belladonna Company and Sachi, Inc. Enter the balances as of February 1, 2019.

2. Journalize the transactions above in a general journal for both Belladonna Company and Sachi, Inc. Begin the journals for both companies with page 12.

3. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Belladonna Company.

4. Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Sachi, Inc.

GENERAL LEDGER ACCOUNTS-BELLADONNA COMPANY

201 Accounts Payable, $6,000 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNT-BELLADONNA COMPANY

Sachi, Inc., $6,000

GENERAL LEDGER ACCOUNTS-SACHI, INC.

111 Accounts Receivable, $6,000 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT-SACHI, INC.

Belladonna Company, $6,000

Analyze:

What is the balance of the accounts payable for Sachi, Inc., in the Belladonna Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Belladonna Company in the Sachi, Inc., accounts receivable subsidiary ledger?

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... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...