Peachtree Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal,

Question:

Peachtree Company uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal. The following transactions occur in the month of May.

May 1 Purchased $ 10,100 of merchandise on credit from Krause, Inc., terms n/30.

8 Sold merchandise costing $ 900 on credit to G. Seles for $ 1,500 subject to a $ 30 sales discount if paid by the end of the month.

14 Purchased $ 240 of store supplies from Chang Company on credit, terms n/30.

17 Purchased $ 260 of office supplies on credit from Monder Company, terms n/30.

24 Sold merchandise costing $ 400 to D. Air for $ 650 cash.

28 Purchased store supplies from Porter’s for $ 90 cash.

29 Paid Krause, Inc., $ 10,100 cash for the merchandise purchased on May 1.

Prepare headings for a purchases journal like the one in Exhibit 7.9. Journalize the May transactions that should be recorded in the purchases journal.


Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Fundamental accounting principle

ISBN: 978-0078025587

21st edition

Authors: John J. Wild, Ken W. Shaw, Barbara Chiappetta

Question Posted: