Dr. Ibrahim CH 7 Exercise 1 Evans Company uses a single-column purchases journal, a cash payments journal, and a general journal to record transactions with its suppliers and others. Record the following transactions in the appropriate journals. Transactions Oct. 5 Purchased merchandise on account for $20,000 from Glover Company. Terms: 2/10,n/30; FOB shipping point. Oct. 6 Paid $7,200 to Federated Insurance Company for a two-year fire insurance policy. Oct. 8 Purchased store supplies on account for $700 from Hicks Supply Company. Terms: 2/10, n/30. Oct. 11 Purchased merchandise on account for $14,000 from Bates Corporation. Terms: 2/10, 1/30; FOB shipping point. Oct. 13 Granted a reduction of $3,000 to Bates Corporation for merchandise purchased on October 11 and returned because of damage. Oct. 15 Paid Glover Company for merchandise purchased on October 5, less discount. Oct. 16 Purchased merchandise for $8,000 cash from Clements Company. Oct. 21 Paid Bates Corporation for merchandise purchased on October 11, less merchandise returned on October 13, less discount. Oct. 25 Purchased merchandise on account for $22,000 from Dixon Company. Terms: 2/10, 1/30; FOB shipping point. Oct. 31 Purchased office equipment for $30,000 cash from Roberts Office Supply Company