! Required information [The following information applies to the questions displayed below.] Digital World is a retail store that sells cameras and photography supplies. The firm's credit purchases and purchases returns and allowances transactions for June 20X1 appear below, along with the general ledger accounts used to record these transactions. The balance shown in Accounts Payable is for the beginning of June. GENERAL LEDGER ACCOUNTS 205 Accounts payable, $13,484 Cr. 501 Purchases 502 Freight In 503 Purchases returns and allowances DATE TRANSACTIONS June 1 Purchased instant cameras for $1,850 plus a freight charge of $130 from Pro Photo Equipment, Invoice 4241, dated May 27; the terms are 60 days net. 8 Purchased film for $1,374 from Photo Supplies, Invoice 1102, dated June 3, net payable in 45 days. 12 Purchased lenses for $896 from Nano Glass, Invoice 7282, dated June 9; the terms are 1/10, n/60. 18 Received Credit Memorandum 110 for $300 from Pro Photo Equipment for defective cameras that were returned; they were originally purchased on Invoice 4241, dated May 27. 20 Purchased color film for $1,000 plus freight of $55 from Photo Supplies, Invoice 1148, dated June 15, net payable in 45 days. 23 Purchased camera cases for $1,936 from Hi-Qual Case, Invoice 3108, dated June 18, net due and payable in 45 days. 28 Purchased lens filters for $2,270 plus freight of $100 from Holtz Spectrum, Invoice 5027, dated June 24; the terms are 2/10, n/30. 30 Received Credit Memorandum 1108 for $210 from Hi-Qual Case; the amount is an allowance for damaged but usable goods purchased on Invoice 3108, dated June 18. Required: 1. Open the general ledger accounts and enter the balance of Accounts Payable for June 1, 20X1. 2. Record the transactions in a three-column purchases journal and in a general journal. 3. Post entries from the general journal to the general ledger accounts. 4. Total and rule the purchases journal as of June 30. 5. Post the column totals from the purchases journal to the proper general ledger accounts. 6. Compute the net delivered cost of purchases for the firm for the month of June. Analyze: What total purchases were posted to the Purchases general ledger account for June? Ledgers Purchases Journal General Journal Analyze Post the opening balances and transactions into the appropriate ledger accounts. Accounts Payable Account No. 205 Purchases Date Debit Credit Balance Date June 01, 20X1 Account No. 501 Credit Balance Debit Freight In Account No. 502 Credit Balance Purchases Returns and Allowances Date Debit Account No. 503 Credit Balance Date Debit Ledgers Purchases Journal General Journal Analyze Prepare a three-column purchase journal to record the above transactions for 20x1. Date Purchased From Purchases Debit Freight In Debit $ $ 130 June01,20X1 June 08,20X1 June 12,20X1 June 20,20X1 June 23,20X1 June 28,20X1 Pro Photo Equipment Photo Supplies Nano Glass Photo Supplies Hi-Qual Case Holtz Spectrum PURCHASES JOURNAL Invoice Date of Number Invoice Terms 4241 5/27 n/60 1102 6/3 n/45 7282 6/9 1/10, n/60 1148 6/15 n/45 3108 6/18 n/45 5027 6/24 2/10, n/30 Accounts Payable Credit $ 1,980 1,374 896 1,055 1,936 2,370 1,850 1,374 896 1,000 1,936 2,270 55 100 June 30, 20X1 Totals 9,611 $ 9,326 $ 285 Ledgers Purchases Journal General Journal Analyze Record transactions in the general journal. No Credit Transaction 1 General Journal Accounts payable/Pro Photo Equipment Purchases returns and allowances Debit 300 A 300 B 2 210 Accounts payable/Hi-Qual Case Purchases returns and allowances 210 Ledgers Purchases Journal General Journal Analyze What total purchases were posted to the Purchases general ledger account for June? Compute the net purchases of the firm for the month of June. Total purchases Net purchases
