The Old English Garden Shop is a retail store that sells garden equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for July are listed below. The general ledger accounts used to record these transactions are also provided. The balance shown is for the beginning of July 20X1.

GENERAL LEDGER ACCOUNTS
205	Accounts payable, $35,790 Cr.
501	Purchases
502	Freight In
503	Purchases returns and allowances

DATE	TRANSACTIONS
July	1		Purchased lawn mowers for $9,120 plus a freight charge of $240 from Charleston Corporation, Invoice 1011, dated June 26, net due and payable in 60 days.
	5		Purchased outdoor chairs and tables for $4,280 plus a freight charge of $543 from Cedarbrook Garden Center, Invoice 639, dated July 2, net due and payable in 45 days.
	9		Purchased grass seed for $1,210 from Lawn and Gardens Supply, Invoice 8164, dated July 5; the terms are 30 days net.
	16		Received Credit Memorandum 110 for $510 from Cedarbrook Garden Center; the amount is an allowance for scratches on some of the chairs and tables originally purchased on Invoice 639, dated July 2.
	19		Purchased fertilizer for $1,110 plus a freight charge of $247 from Lawn and Gardens Supply, Invoice 9050, dated July 15; the terms are 30 days net.
	21		Purchased hoses from Dunn Rubber Company for $3,590 plus a freight charge of $215, Invoice 1785, dated July 17; terms are 1/15, n/60.
	28		Received Credit Memorandum 223 for $340 from Dunn Rubber Company for damaged hoses that were returned; the goods were purchased on Invoice 1785, dated July 17.
	31		Purchased lawn sprinkler systems for $10,220 plus a freight charge of $269 from Warren Industrial Products, Invoice 8985, dated July 26; the terms are 2/10, n/30.

Required:

1. Set up an accounts payable subsidiary ledger for The Old English Garden Shop. Open an account for each of the creditors listed below and enter the balances as of July 1.
2. Post the individual entries from the purchases journal and the general journal prepared in Part I.
3. Prepare a schedule of accounts payable for July 31, 20X1.
4. 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.

Creditors
Name	Terms	Balance
Cedarbrook Garden Center		n/45		$	11,030
Charleston Corporation		n/60			18,030
Dunn Rubber Company		1/15, n/60
Lawn and Gardens Supply		n/30			6,730
Warren Industrial Products		2/10, n/30

Analyze: What total freight charges were posted to the general ledger for the month of July?

Required information Enter the opening balances as on July 1 and the above transactions on the accounts payable subsidiary ledger for The Old English Ga Date July 1, 20X1 Cedarbrook Garden Center Debit Terms n/45 Credit Balance. Charleston Corporation Terms n/60 Date Debit Credit Balance July 1, 20X1 Dunn Rubber Company Terms 1/15, n/60 Lawn and Gardens Supply Terms n/30 Date Debit Credit Balance Date Debit Credit Balance July 1, 20X1 Date Warren Industrial Products Debit Terms 2/10, n/30 Credit Balance < Ledgers Schedule of AP > S < Prev G5 of 5 Next > MacBook Air B DII Nu