Part Three-Journalizing Purchases, Cash Payments, and Other Transactions Selected transactions completed by Bates Company during October of the current year are listed below. Directions: 1. Journalize the following transactions affecting purchases and cash payments completed during October of the current year. Use page 10 of a purchases journal, a general journal, and a cash payments journal. The journals are shown below and on page 3 of this test. Source documents are abbreviated as follows: check, C; debit memorandum, DM; memorandum, M; purchase invoice, P. Transactions Oct. 1. Returned merchandise to Exploration, Inc., $55.00, from P280. DM87. 5. Paid cash for rent, $1,600.00. C115. 9. Purchased merchandise on account from Creativity Co., $1,552.00. P281. 10. Paid cash for telephone bill, $218.00. C116. 12. Paid cash to Nelson Company for merchandise with a list price of $600.00, less a 42.5% trade discount. C117. 15. Paid cash on account to Exploration, Inc., $2,095.00, covering P280 for $2,150.00, less DM87, $55.00; no discount. C118. 17. Bought supplies on account from Foremost Goods, $487.00. M129. 19. Paid cash on account to Creativity Co., $1,520.96, covering P281 for $1,552.00, less 2% discount, $31.04. C119. 23. Paid cash on account to Foremost Goods, $487.00, covering M129; no discount. C120. 26. Purchased merchandise on account from Exploration, Inc., $1,650.00. P282. 31. Paid cash to replenish the petty cash fund, $116.00: supplies, $39.25; advertising, $66.50; miscellaneous, $13.75; cash over, $3.50. C121. 2. Total and rule the purchases journal. 3. Prove and rule the cash payments journal