Moncado Company has the following selected transactions during March.

Mar. 2 Purchased equipment costing $9,400 from Aleksic Company on account.

5 Received credit of $410 from Dumont Company for merchandise damaged in shipment to Moncado.

7 Issued credit of $390 to Gavin Company for merchandise the customer returned.

The returned merchandise had a cost of $240.

Moncado Company uses a one-column purchases journal, a sales journal, the columnar cash journals used in the text, and a general journal.

Instructions

(a) Journalize the transactions in the general journal.

(b) In a brief memo to the president of Moncado Company, explain the postings to the control and subsidiary accounts from each type of journal.