Problem $8\mathrm{.}6$A $($Algo$)$ Journalizing and posting merchandising transactions for buyer and seller. LO $8-1,8-3,8-4$

Bowden Company $($buyer$)$ and Song, Inc. $($seller$),$ engaged in the following transactions during January $20$X$1$:

Bowden Company

DATE TRANSACTIONS

$20$X$1$

Jan. $8$ Issued Check $2101$ for $$2,254$ on account to Song, Inc., in payment of Invoice $1885$ dated December $30,20$X$0,$ less cash discount of $$46.$

$10$ Purchased merchandise for $$1,650$ from Song, Inc., Invoice $1920$; terms $2/10,$ n$/30.$

$15$ Received Credit Memorandum $320$ from Song, Inc., for damaged merchandise totaling $$100$ that was returned; the goods were purchased on Invoice $1920,$ dated January $10.$

$19$ Paid amount due to Song, Inc., for Invoice $1920$ of January $10,$ less the return of January $15$ and less the cash discount, Check $2130.$

$30$ Purchased merchandise for $$3,500$ from Song, Inc., Invoice $1950$; terms $2/10,$ n$/30.$

GENERAL LEDGER ACCOUNTS$$BOWDEN COMPANY

$201$ Accounts Payable, $$2,300$ Cr$.$

ACCOUNTS PAYABLE LEDGER ACCOUNT$$BOWDEN COMPANY

Song, Inc., $$2,300$

Song, Inc.

DATE TRANSACTIONS

$20$X$1$

Jan. $8$ Received payment of $$2,254$ on account from Bowden Company in payment of Invoice $1885$ dated December $30,20$X$0,$ less cash discount of $$46.$

$10$ Sold merchandise for $$1,650$ on account to Bowden Company, Invoice $1920,$ terms $2/10,$ n$/30.$

$15$ Issued Credit Memorandum $320$ to Bowden Company for damaged merchandise totaling $$100$ that was returned; the goods were purchased on Invoice $1920,$ dated January $10.$

$19$ Received payment from Bowden Company for Invoice $1920$ of January $10,$ less the return of January $15$ and less the cash discount.

$30$ Sold merchandise for $$3,500$ to Bowden Company, Invoice $1950$; terms $2/10,$ n$/30.$

GENERAL LEDGER ACCOUNTS$$SONG$,$ INC.

$111$ Accounts Receivable, $$2,300$ Dr$.$

ACCOUNTS RECEIVABLE LEDGER ACCOUNT$$SONG$,$ INC.

Bowden Company, $$2,300$

Required:

$1$a$.$ Journalize the transactions above in a general journal for Bowden Company.

$1$b$.$ Journalize the transactions above in a general journal for Song, Inc.

$2.$ Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.

$3.$ Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:

What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?