This problem is a continuation of Problem 8.1B. INSTRUCTIONS 1. Set up an accounts payable subsidiary ledger

Question:

This problem is a continuation of Problem 8.1B.

INSTRUCTIONS

1. Set up an accounts payable subsidiary ledger for Mountain Ski Shop. Open an account for each of the creditors listed below and enter the balances as of May 1, 2016. Arrange the accounts payable ledger in alphabetical order.

2. Post the individual entries from the purchases journal and the general journal prepared in Problem 8.1B.

3. Prepare a schedule of accounts payable for May 31.

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

May-Day Ski Shop.............................. n/30......................... $1,700

Fashion Ski Wear................................ n/60........................... 8,720

Winter Sports Clothing......................... 1/10, n/60.....................5,000

East Coast Snow Shop.......................... n/45........................... 6,188

Golden Skis & Clothing.........................2/10, n/30

Analyze:

What amount did Mountain Ski Shop owe to its supplier, East Coast Snow Shop, on May 31?

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...