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 2019 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, $13,754 Cr.
501	Purchases
502	Freight In
503	Purchases Returns and Allowances

DATE			TRANSACTIONS
June	1		Purchased instant cameras for $1,920 plus a freight charge of $165 from Pro Photo Equipment, Invoice 4241, dated May 27; the terms are 60 days net.
	8		Purchased film for $1,381 from Photo Supplies, Invoice 1102, dated June 3, net payable in 45 days.
	12		Purchased lenses for $903 from Nano Glass, Invoice 7282, dated June 9; the terms are 1/10, n/60.
	18		Received Credit Memorandum 110 for $335 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 $1,070 plus freight of $62 from Photo Supplies, Invoice 1148, dated June 15, net payable in 45 days.
	23		Purchased camera cases for $1,943 from Hi-Qual Case, Invoice 3108, dated June 18, net due and payable in 45 days.
	28		Purchased lens filters for $2,340 plus freight of $107 from Holtz Spectrum, Invoice 5027, dated June 24; the terms are 2/10, n/30.
	30		Received Credit Memorandum 1108 for $245 from Hi-Qual Case; the amount is an allowance for damaged but usable goods purchased on Invoice 3108, dated June 18.

Creditors
Name	Terms			Balance
Photo Supplies		n/45		$	10,450
Hi-Qual Case		n/45			1,170
Pro Photo Equipment		n/60
Nano Glass		1/10, n/60			2,134
Holtz Spectrum		2/10, n/30

Required:

Set up an accounts payable subsidiary ledger for Digital World. Open an account for each of the creditors listed below and enter the balances as of June 1, 2019. Arrange the accounts payable ledger in alphabetical order.

Post the opening balances and transactions from the purchases journal and the general journal.

Prepare a schedule of accounts payable for June 30.

Check the total of the schedule of accounts payable against the balance of the Accounts Payable account in the general ledger. The two amounts should be equal.

Analyze:
What amount is owed to Nano Glass on June 30?

 
 

Purchases Journal General Journal Ledgers Schedule of AP Analyze Post the opening balances and transactions from the purchases journal and the general journal. HOual Case Dste Terms n45 Haltz Spectrilim Ferms 2/10, n30 Debit Credit Falange Date Debit Credit Balance June 01, 2019 Nano Glass Terms 1/10, /60 Photo Supplies Terms n/45 Date Debit Credit Debit Credit Balance Balance Date June 01, 2019 June 01, 2019 Pro Photo Equipment Terms n/60 Date Debit Credit Balance < Prev 2 of 4 Next > eg M Chapter_8 Solutio..doc^