For each situation given below prepare the October General Journal for Mocha Company. Mocha uses a...

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For each situation given below prepare the October General Journal for Mocha Company. Mocha uses a perpetual inventory system. Oct. 5 8 10 15 Paid $26,000 cash for operating expenses that were incurred and properly recorded in the previous period. Purchased merchandise for $20,000 on account. Credit terms: 2/10, n/30. Paid freight bill of $540 for merchandise purchased on October 8. Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled. 20 Sold merchandise for $30,000 to John on account. The cost of the merchandise sold was $19,500. Credit terms: 2/10, n/30. Issued a credit memo to John for $2,000 for merchandise returned by him from the sale on October 20. The cost of the merchandise returned was $1,300. 25 For each situation given below prepare the October General Journal for Mocha Company. Mocha uses a perpetual inventory system. Oct. 5 8 10 15 Paid $26,000 cash for operating expenses that were incurred and properly recorded in the previous period. Purchased merchandise for $20,000 on account. Credit terms: 2/10, n/30. Paid freight bill of $540 for merchandise purchased on October 8. Paid for merchandise purchased on October 8. The company takes all discounts to which it is entitled. 20 Sold merchandise for $30,000 to John on account. The cost of the merchandise sold was $19,500. Credit terms: 2/10, n/30. Issued a credit memo to John for $2,000 for merchandise returned by him from the sale on October 20. The cost of the merchandise returned was $1,300. 25

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Journal entries Date General Journal Debit Credit Oct 5 Accrued expense payable 26000 Cash 26000 ... View the full answer