Nolasco Company has the following selected transactions during March.
Mar. 2 Purchased equipment costing $9,400 from Brantly Company on account.
5 Received credit of $410 from Dumont Company for merchandise damaged in shipment to Nolasco.
7 Issued credit of $390 to Horst Company for merchandise the customer returned. The returned merchandise had a cost of $240.
Nolasco 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 Nolasco Company, explain the postings to the control and subsidiary accounts from each type of journal.