Bailey Company $($buyer$)$ and Suarez, Incorporated $($seller$),$ engaged in the following transactions during January $20$X$1$:

Bailey Company

DATE TRANSACTIONS

January $8,20$X$1$ Issued Check $2101$ for $$2,842$ on account to Suarez, Incorporated, in payment of Invoice $1885,$ dated December $30,20$X$0,$ less cash discount of $$58.$

January $10,20$x$1$ Purchased merchandise for $$1,950$ from Suarez, Incorporated, Invoice $1920$; terms $\frac{2}{10},$ n$/30.$

January $15,20$X$1$ Received Credit Memorandum $320$ from Suarez, Incorporated, for damaged merchandise totaling $$100$ that was returned; the goods were purchased on Invoice $1920,$ dated January $10.$

January $19,20$X$1$ Paid amount due to Suarez, Incorporated, for Invoice $1920$ of January $10,$ less the return of January $15$ and less the cash discount, check $2130.$

January $30$; $20$x$1$ Purchased merchandise for $$4,100$ from Suarez, Incorporated, Invoice $1950$; terms $\frac{2}{10},\frac{n}{30}.$

GENERAL LEDGER ACCOUNTS$-$BAILEY COMPANY

$201$ Accounts Payable, $$2,900$ Credit

ACCOUNTS PAYABLE LEDGER ACCOUNT$-$BAILEY COMPANY

Suarez, Incorporated, $$2,900$

Suarez, Incorporated

DATE TRANSACTIONS

January $8,20$X$1$ Received payment of $$2,842$ on account from Bailey Company in payment of Invoice $1885,$ dated December $30,20$X$0,$ less cash discount of $$58.$

January $10,20$x$1$ Sold merchandise for $$1,950$ on account to Bailey company, Invoice $1920,$ terms $\frac{2}{10},\frac{n}{30}.$

January $15,20$X$1$ Issued Credit Memorandum $320$ to Bailey Company for damaged merchandise totaling $$100$ that was returned; the goods were purchased on Invoice $1920,$ dated January $10.$

January $19,20$X$1$ Received payment from Bailey Company for Invoice $1920$ of January $10,$ less the return of January $15$ and less the cash discount.

January $30,20$X$1$ Sold merchandise for $$4,100$ to Bailey Company, Invoice $1950$ ; terms $\frac{2}{10},\frac{n}{30}.$

GENERAL LEDGER ACCOUNTS$-$SUAREZ, INCORPORATED

$111$ Accounts Receivable, $$2,900$ Debit

ACCOUNTS RECEIVABLE LEDGER ACCOUNT$-$SUAREZ, INCORPORATED

Bailey Company, $$2,900$

Required:

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

$1$b$.$ Journalize the transactions above in a general journal for Suarez, Incorporated

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

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

Analyze:

What is the balance of the accounts payable for Suarez, Incorporated, in the Bailey Company accounts payable subsidiary ledger?

What is the balance of the accounts receivable for Bailey Company in the Suarez, Incorporated, accounts receivable subsidiary ledger?

Complete this question by entering your answers in the tabs below.

Bailey Journal

Suarez Journal

Bailey Ledgers

Suarez

Ledgers