James and Alvo Ltd are wholesalers of bicycles. 

The company buys goods from a number of bicycle manufacturers. Manufacturers offer trade discounts for large orders. 

During October 2014 the following invoices were received.

James and Alvo Ltd sell bicycles to many retailers.

During October 2014 the following invoices were issued.

Prepare the following accounting records in the books of James and Alvo Ltd:

• Purchases journal

• Sales journal

• Purchases ledger accounts

• Sales ledger accounts

• Appropriate general ledger accounts.

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Oct 12 Purchase invoice received from Melfin Ltd for 20 bicycles with a normal price of $160 each. The invoice showed the deduction of a trade discount of 25% 28 Purchase invoice received from Harvey Bikes for 15 bicycles witha normal price of $430 each. The invoice showed the deduction of a trade discount of 33%%