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PART B - Question 2 (15 marks) Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred
PART B - Question 2 (15 marks) Abercrombie Company uses four special journals: Purchases, Sales, Cash Receipts, and Cash Disbursements. The following transactions were incurred during August: Aug. 1 Purchased merchandise from Able Co. for $2,000, terms 2/10, 1/30. 3 Purchased merchandise from Baker Co. for $1,000, terms 1/15, 1/30. 4 Sold merchandise on credit to Coe Co. for $4,000, terms 2/10, 1/30, Invoice No. 245. 8 Purchased office supplies on credit from Echo Co. for $300, terms n/30. 9 Returned merchandise costing $200 to Able Co. from August 1 purchase. 11 Paid Able Co. for the August 1 purchase, Cheque No. 758. 13 Received payment from Coe Co. for August 4 sale. 15 Paid rent expense $1,500, Cheque No. 759. 18 Received $2,300 for a $2,000 note receivable from Fox Corp. 20 Made payment in full to Baker Co. for the August 3 purchase, Cheque No. 760. 28 Recorded cash sales for the month $9,000. 29 Paid monthly telephone bill $250, Cheque No. 761. Record the above transactions in the appropriate journals below. Ignore transactions that should not be posted to the journals provided. Purchases Journal Invoice Date Accts. Payable Credit Office Other Purchases Suppl. Accts. Debit Debit Debit Date Account Terms PR Cash Payments Journal Pur. Disc., Credit Account Debited Other Accts. Debit Date Ch. No Accts. Pay Debit Cash Credit Payee PR
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