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Help please with this accounting problem Ray Polo owns a variety store called Stars Forever. The following are purchases of inventory, returns, and discounts for
Help please with this accounting problem
Ray Polo owns a variety store called Stars Forever. The following are purchases of inventory, returns, and discounts for the month of March Mar. 2 Purchased $2,000 of merchandise from Sundance Furniture on account, invoice 2177, with a 1% trade discount. Credit terms 2/10, n/30 2 2 6 8 11 12 13 16 23 26 27 Paid rent for the month of March. Issued Check 145 for $2,100 Purchased merchandise from Taylor Supplies. Issued Check 146 for $1,650 Purchased $2,400 of merchandise from Fuentes Co. on account, Invoice 2178. Credit terms 1/15, n/30 Returned $400 of the merchandise from Fuentes Co. Received Credit Memorandum 11 Paid Invoice 2177 to Sundance Furniture. Issued Check 147 for $1,940.40 Purchased $3,700 of merchandise (included $150 freight) from Sky Divers Inc. on account, Invoice 2179. Credit terms 1/10, n/30, FOB shipping point. Purchased $210 of office supplies from Willow Inc. on account, invoice 2180. Credit terms 2/10, n/30 Paid Invoice 2178 to Fuentes Co. Issued Check 148 for $1,980 Paid Invoice 2179 to Sky Divers Inc. Issued Check 149 for $3,700 Purchased 1,745 of merchandise from Sundance Furniture on account, invoice 2181, Credit terms 2/10, n/30 A partial chart of accounts is as follows (assume Cash has an existing balance of $20,000): Office Supplies Accounts Payable Purchases Purchases Returns and Allowances Purchases Discounts Freight-In Rent Expense 501.1 502 Required: 1 (i). Enter the transactions in purchase journal using the above information, as appropriate 2 PURCHASES JOURNAL 6 Invoice From Whom Purchased Purchases Debit, Post. Ref. Accounts Payable Credit Mar. 2 2177 Sundance FurnitureV 8 2178 Fuentes Co. 13 2179 Sky Divers Inc. 27 2181 Sundance Furniture V (501) (202)Step by Step Solution
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