Question
E5: Chapter 5 Accounting for Merchandising Operations (10 Points) On October 1, Brad Company purchases $1,000 of merchandise from Paisley Company with terms of 3/10,
E5: Chapter 5 Accounting for Merchandising Operations (10 Points)
On October 1, Brad Company purchases $1,000 of merchandise from Paisley Company with terms of 3/10, n/30. The journal entry has been recorded and posted to the relevant General Ledger accounts.
Brad will pay for the merchandise on October 10. Prepare the journal entry to record the payment. Post to the relevant General Ledger accounts. Remember to use the Date and PR columns in both the Journal and the Ledger.
General Journal
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Date | Account Titles and Explanation | PR | Debit | Credit |
2015 |
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10/01 | Merchandise Inventory | 130 | 1,000 |
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| Accounts Payable | 200 |
| 1,000 |
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Partial General Ledger
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| Cash | ACCT | 100 |
Date |
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2015 | Explanation | PR | Debit | Credit | Balance |
10/10 | Balance |
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| 5,000 |
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| Merchandise Inventory | ACCT | 130 |
Date |
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2015 | Explanation | PR | Debit | Credit | Balance |
10/01 |
| G4 | 1,000 |
| 1,000 |
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| Accounts Payable | ACCT | 200 |
Date |
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2015 | Explanation | PR | Debit | Credit | Balance |
10/01 |
| G4 |
| 1,000 | 1,000 |
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