Simpson's Card and Novelty Shop is a retail card, novelty, and business supply store. Its credit purchases and purchases returns and allowances for February 2016 appear on the next page. The general ledger accounts and the creditors' accounts in the accounts payable subsidiary ledger used to record these transactions are also provided. The balance shown is for the beginning of February.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balance of Accounts Payable for February.

2. Open the creditors' accounts in the accounts payable subsidiary ledger and enter the balances for February 1, 2016.

3. Record each transaction in the appropriate journal, purchases or general. Use page 4 in the purchases journal and page 12 in the general journal.

4. Post entries to the accounts payable subsidiary ledger daily.

5. Post entries in the general journal to the proper general ledger accounts at the end of the month.

6. Total and rule the purchases journal as of February 29.

7. Post the totals to the appropriate general ledger accounts.

8. Calculate the net delivered cost of purchases.

9. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable control account with the schedule of accounts payable.

GENERAL LEDGER ACCOUNTS

203..................... Accounts Payable, $15,200 credit balance

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

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

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

.............................................Creditors

Name...................................... Terms................ Balance

Business Forms, Inc..................... n/30.................... $8,000

Gifts and Holiday Cards................... 2/10, n/30...............4,000

Packing and Mailing Supply Center... 2/10, n/30...............3,200

Specialty Business Cards................1/10, n/45

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

Feb. 5 Purchased copy paper from Packing and Mailing Supply Center for $2,000 plus $100 shipping charges on Invoice 502, dated February 2.

8 Purchased assorted holiday cards from Gifts and Holiday Cards on Invoice 2808, $1,900, dated February 5.

12 Purchased five boxes of novelty items from Gifts and Holiday Cards for a total cost of $1,200, Invoice 2904, dated February 8.

13 Purchased tray of cards from Specialty Business Cards on Invoice 2013 for $1,100, dated February 9.

19 Purchased supply of forms from Business Forms, Inc., for $1,980 plus shipping charges of $60 on Invoice 2019, dated February 16.

20 One box of cards purchased on February 8 from Gifts and Holiday Cards was water damaged. Received Credit Memorandum 102 for $200.

21 Toner supplies are purchased from Specialty Business Cards for $3,600 plus shipping charges of $110, Invoice 1376, dated February 19.

27 Received Credit Memorandum 118 for $240 from Gifts and Holiday Cards as an allowance for damaged novelty items purchased on February 12.

Analyze:

What total amount did Simpson's Card and Novelty Shop pay in freight charges during the month of February? What percentage of delivered cost of purchases does this represent?