A Company Records Its Transactions and Events in Four Special

question 92

Essay

A company records its transactions and events in four special journals and a general journal (perpetual inventory method).The columns of these journals are numbered as follows:
$$\begin{array} { | l | l | } \hline \text { Sales Journal } & \text { Purchases Journal } \\\hline \text { 1. Accounts Receivable/Sales } & \text { 3. Accounts Payable } \\\hline \text { 2. Cost of goods sold/ Inventory } & \text { 4. Inventory } \\\hline & \text { 5. Office Supplies } \\\hline & \text { 6. Other Accounts } \\\hline & \\\hline \text { Cash Receipts Journal } & \text { Cash Disbursements Journal } \\\hline \text { 7. Cash } & \text { 13. Cash } \\\hline \text { 8. Sales Discounts } & \text { 14. Inventory } \\\hline \text { 9. Accounts Receivable } & \text { 15. Other Accounts } \\\hline \text { 10. Sales } & \text { 16. Accounts Payable } \\\hline \text { 11. Other Accounts } & \\\hline \text { 12. Cost of goods Sold / Inventory } & \\\hline & \\\hline \text { General Journal } & \\\hline \text { 17. Miscellaneous Dr. } & \\\hline \text { 18. Miscellaneous Cr. } &\\\hline\end{array}$$
Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s)of the columns in which the debit(s)would appear in the column labeled "Debits" below and by inserting the number(s)of the columns in which the credits would appear in the column labeled "Credits" below.
$$\begin{array} { | l | l | l |l| } \hline && \text { Debits } & \text { Credits } \\\hline \text { a. } &\text { Sold merchandise on account, } \$ 1,200 \text {; the cost of the goods sold }& & \\&\text { is } \$ 750 \text {. }\\\hline \text { b. }&\text { Collected a customer's account, } \$ 800 \text { cash, less a } 2 \% \text { discount. } & & \\\hline \text { c. } &\text { Received and paid the monthly electric bill, \$250 cash. }& & \\\hline \text { d. } &\text { Purchased office supplies on credit } \$ 100 \text {. }& & \\\hline \text { e. } &\text { Sold merchandise for cash, } \$ 500 \text {. }& & \\\hline \text { f. } &\text { Paid a creditor for merchandise within the Discount period, }& & \\&\$ 1,000 \text { cash, credit terms of } 2 / 10, \text{n} / 30 \text {. }\\\hline \text { g. }&\text { Customer returned merchandise, } \$ 150 \text {; the cost of the goods } & & \\&\text { returned is } \$ 95 \text {. }\\\hline \text { h. } &\text { Purchased merchandise on account, } \$ 2,000 \text {. }& & \\\hline\end{array}$$

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