Digital World is a retail store that sells cameras and photography supplies. The firm's credit purchases and purchases returns and allowances transactions for June 2016 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.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balance of Accounts Payable for June 1, 2016.

2. Record the transactions in a three-column purchases journal and in a general journal. Use 14 as the page number for the purchases journal and 38 as the page number for the general journal.

3. Post entries from the general journal to the general ledger accounts.

4. Total and rule the purchases journal as of June 30.

5. Post the column totals from the purchases journal to the proper general ledger accounts.

6. Compute the net purchases of the firm for the month of June.

GENERAL LEDGER ACCOUNTS

205.......... Accounts Payable, $14,404 Cr.

501.......... Purchases

502.......... Freight In

503.......... Purchases Returns and Allowances

DATE................ TRANSACTIONS

June 1 Purchased instant cameras for $2,050 plus a freight charge of $230 from Pro Photo Equipment,

Invoice 4241, dated May 27; the terms are 60 days net.

8 Purchased film for $1,394 from Photo Supplies, Invoice 1102, dated June 3, net payable in 45 days.

12 Purchased lenses for $916 from Nano Glass, Invoice 7282, dated June 9; the terms are 1/10, n/60.

18 Received Credit Memorandum 110 for $400 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 $1,200 plus freight of $75 from Photo Supplies, Invoice 1148, dated June 15, net payable in 45 days.

23 Purchased camera cases for $1,956 from Hi-Qual Case, Invoice 3108, dated June 18, net due and payable in 45 days.

28 Purchased lens filters for $2,470 plus freight of $120 from Holtz Spectrum, Invoice 5027, dated June 24; the terms are 2/10, n/30.

30 Received Credit Memorandum 1108 for $310 from Hi-Qual Case; the amount is an allowance for damaged but usable goods purchased on Invoice 3108, dated June 18.