Ordered the following inventory on account from Velocity Sporting Goods using purchase order No. 328. The goods will be received at the warehouse at a later date.

Units:

120 BB-019 Basketball Pole Pad ($94 each)

80 BB-538 Basketball bag ($26 each)

30 BB-688 Portable inflation pump ($69 each)

75 BB-926 Trainer's first aid kit ($30 each)

Total price: $17,680

12/22

Waren Sporting Goods received merchandise from Velocity Sports as listed on the purchase order. All merchandise was delivered, except that only 76 basket balls pole pads, instead of 120, were received. The goods were placed immediately in the inventory warehouse.

Total value of received items: $13.544

12/26

Received vendor invoice No. 34719 (Doc. No. 18) from Velocity Sporting Goods for goods ordered December 18 and received December 22.

(Follow the flowchart steps on page 22. Upon receiving the invoice, you can now record the purchase using the date on which Waren incurred the liability for the goods.)

12/28

Issued check to Velocity Sporting Goods for payment in full of their invoice No. 34719 for goods received December 22. (Consider the credit terms before making the payment.

I'm confused as to how to record this. Despite the shortage of items being received, the invoice ultimately is charging $17,680 for the full amount. According to the flow chart, these would be recorded on the Purchases Journal and Accounts Payable Subsidiary Ledger, but what would the entries look like and what amount would the check be written out to?

 

 

  

Transcribed Image Text:

252 VELOCITY SPORTING GOODS 1285 Colgrove Ave. Pierre, SD 57501 TERMS: 2/10, Net 30 Date Oct. L Balance Forward Oct. 5 Vendor Invoice #32407 Oct. 13 Check #1112 Nov. 3. Vendor Invoice #33371 Nov 13 Check #1125 Dec 5 DEC Vendor Invoice #33965 13 Check #1142 22 Ievaile P3414 29 12 ACCOUNTS PAYABLE SUBSIDIARY LEDGER 253 CHICAGO OFFICE SUPPLY 1411 E. Michigan Chicago, IL 60606 Oct. Oct. Oct. TERMS: Due on receipt of invoice Date FREIGHT: Collect Description Nov. 8 Nov. 21 261 1 Balance Forward 6 Check #1111 19 Vendor Invoice #2112 Check 1124 Vendor Invoice #2275 Nov. 23 Check #1136 Dec. 12 Vendor Invoice #2344 Dec. 12 Check #1141 Description GILLETT CONSULTING 5613 Lantern View Chicago, IL 60612 TERMS: Net 30 days Date Oct. I Balance Forward Oct. aiverity FREIGHT: No Charge Description 3 Vendor Invoice #9884 Debit 8128500 21550 00 36115.00 Debit Cred Balance 1-0- 8128500 81265,00 1-0- 2738000 27380.00 -0- 3611500 34115.00 1-0- 1087 83 185 80 558 09 7367 00 Debit Credit 98580 558 09 1367 00 Load Balance 1087 83 -0- 185 80 -0- 558 0 1-0- 7367 0 -0- H Credit 365000 Bal 3 252 VELOCITY SPORTING GOODS 1285 Colgrove Ave. Pierre, SD 57501 TERMS: 2/10, Net 30 Date Oct. L Balance Forward Oct. 5 Vendor Invoice #32407 Oct. 13 Check #1112 Nov. 3. Vendor Invoice #33371 Nov 13 Check #1125 Dec 5 DEC Vendor Invoice #33965 13 Check #1142 22 Ievaile P3414 29 12 ACCOUNTS PAYABLE SUBSIDIARY LEDGER 253 CHICAGO OFFICE SUPPLY 1411 E. Michigan Chicago, IL 60606 Oct. Oct. Oct. TERMS: Due on receipt of invoice Date FREIGHT: Collect Description Nov. 8 Nov. 21 261 1 Balance Forward 6 Check #1111 19 Vendor Invoice #2112 Check 1124 Vendor Invoice #2275 Nov. 23 Check #1136 Dec. 12 Vendor Invoice #2344 Dec. 12 Check #1141 Description GILLETT CONSULTING 5613 Lantern View Chicago, IL 60612 TERMS: Net 30 days Date Oct. I Balance Forward Oct. aiverity FREIGHT: No Charge Description 3 Vendor Invoice #9884 Debit 8128500 21550 00 36115.00 Debit Cred Balance 1-0- 8128500 81265,00 1-0- 2738000 27380.00 -0- 3611500 34115.00 1-0- 1087 83 185 80 558 09 7367 00 Debit Credit 98580 558 09 1367 00 Load Balance 1087 83 -0- 185 80 -0- 558 0 1-0- 7367 0 -0- H Credit 365000 Bal 3

Answer rating: 100% (QA)

Question PURCHASES JOURNAL Date Vendor Vendor Invoice No DEBIT CREDIT Pu... View the full answer