Office Plus is a retail business that sells office equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for September are shown below. The general ledger accounts and the creditors' accounts in the accounts payable subsidiary ledger used to record these transactions are also provided. All balances shown are for the beginning of September. GENERAL LEDGER ACCOUNTS 205 Accounts payable, $28,246 Cr. 501 Purchases 502 Freight In 503 Purchases returns and allowances Creditors Name Apex Office Machines, Inc. Brown Paper Company Dalton Office Furniture Company Davis Corporation Zenn Furniture, Inc. Terms n/60 1/10, n/30 n/30 n/30 2/10, n/30 Balance $ 10,950 2,110 9,566 5,620 DATE TRANSACTIONS Sept. 3 Purchased desks for $7,910 plus a freight charge of $211 from Dalton Office Furniture Company, Invoice 4213, dated August 29; the terms are 30 days net. 7 Purchased computers for $11,200 from Apex Office Machines, Inc., Invoice 9217, dated September 2, net due and payable in 60 days. 10 Received Credit Memorandum 511 for $590 from Dalton Office Furniture Company; the amount is an allowance for damaged but usable desks purchased on Invoice 4213, dated August 29. 16 Purchased file cabinets for $2,546 plus a freight charge of $123 from Davis Corporation, Invoice 8066, dated September 11; the terms are 30 days net. 20 Purchased electronic desk calculators for $1,200 from Apex Office Machines, Inc., Invoice 11011, dated September 15, net due and payable in 60 days. 23 Purchased bond paper and copy machine paper for $7,400 plus a freight charge of $100 from Brown Paper Company, Invoice 6498, dated September 18; the terms are 1/10, n/30. 28 Received Credit Memorandum 312 for $870 from Apex Office Machines, Inc., for defective calculators that were returned; the calculators were originally purchased on Invoice 11011, dated September 15. 30 Purchased office chairs for $3,830 plus a freight charge of $159 from Zenn Furniture, Inc., Invoice 696, dated September 25; the terms are 2/10, n/30. Required: 1. Open the general ledger accounts and enter the balance of Accounts Payable for September 1, 20X1. 2. Open the creditors' accounts in the accounts payable subsidiary ledger and enter the balances for September 1. 3. Record the transactions in a three-column purchases journal and in a general journal. 4. Post to the accounts payable subsidiary ledger daily. 5. Post the entries from the general journal to the proper general ledger accounts at the end of the month. 6. Total and rule the purchases journal as of September 30. 7. Post the column totals from the purchases journal to the proper general ledger accounts. 8. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable control account with the schedule of accounts payable. Analyze: What total amount was recorded for purchases returns and allowances in the month of September? What percentage of total purchases does this represent? Ledgers Purchases Journal General Journal Schedule of AP Analyze Enter the opening balances and transactions into the appropriate ledger accounts. General Ledger Accounts Payable Account No. 205 Purchases Date Debit Credit Balance Date Sep 01, 20X1 Account No. 501 Credit Balance Debit Freight in Account No. 502 Account No. 503 Purchases Returns and Allowances Date Debit Date Debit Credit Balance Credit Balance Apex Office Machines, Inc. Date Debit Sep 01, 20X1 Accounts Payable Subsidiary Ledger Terms n/60 Brown Paper Company Credit Balance Date Debit Sep 01, 20X1 Terms 1/10, n/30 Credit Balance Dalton Office Furniture Company Terms n/30 Terms n/30 Davis Corporation Date Debit Date Debit Credit Balance Credit Balance Sep 01, 20X1 Zenn Furniture, Inc. Date Debit Sep 01, 20X1 Terms 2/10, n/30 Credit Balance Ledgers Purchases Journal General Journal Schedule of AP Analyze Prepare a three-column purchase journal to record the above transactions for September, 20x1. PURCHASES JOURNAL Date Account Invoice Number Date of Invoice Terms Accounts Payable Credit Purchases Debit Freight in Debit Sept. 30 Totals Analyze Purchases General Ledgers Schedule of AP Journal Journal Record transactions in the general journal. View transaction list Journal entry worksheet B > Record the first entry required in the general journal. Note: Enter debits before credits. General Journal Debit Credit Transaction 1 Record entry Clear entry View general journal Journal entry worksheet
