Ravi is a trader. His transactions in February 20–1 included the following.February

Ravi is a trader. His transactions in February 20–1 included the following.

February 2 Sold goods on credit to Kumar, list price $7,850, less 20% trade discount

4 Bought goods on credit from Mahela, list price $960, less 25% trade discount

10 Returned to Mahela half of the goods purchased on 4 February

14 Sold goods on credit to Dimuth at list price, $520

19 Bought goods on credit from Mahela, list price $750, less 20% trade discount

20 Dimuth returned goods purchased on 14 February, list price $110

21 Returned goods bought from Mahela on 19 February, list price $150

a. Enter these transactions in Ravi’s sales, purchases and returns journals for February 20–4.

b. Write up the following accounts in Ravi’s ledger for February 20–4:

sales, purchases, sales returns, purchases returns, Kumar, Dimuth, and Mahela. It is not necessary to balance or total any of the accounts.