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A Company Records Its Transactions and Events in Four Special

question 144

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A company records its transactions and events in four special journals and a general journal.The amount columns of these journals are numbered as follows:
$A company records its transactions and events in four special journals and a general journal.The amount columns of these journals are numbered as follows: Show how each of the following transactions would be recorded in the above set of accounting journals by inserting the number(s)of the columns in which the debit(s)would appear in the column labeled Debits below and by inserting the number(s)of the columns in which the credits would appear in the column labeled Credits below. \begin{array} { | l | l | l | l | } \hline \text { a. } & \begin{array} { l } \text { Sold merchandise on acount, } \\ \$ 750 . \end{array} & \text { Debits}& \text { Credits } \\ \hline \text { b. } & \text { Collected a customer's account, \$800 cash, less a 2\% discount. } & & \\ \hline \text { c. } & \text { Received and paid the monthly electric bill, } \$ 250 \text { cash. } & \\ \hline \text { d. } & \text { Purchased office supplies on credit, \$100. } & & \\ \hline \text { e. } & \text { Sold merchandise for cash, } \$ 500 . & & \\ \hline \text { f. } & \begin{array} { l } \text { Paid a creditor for merchandise within the Discount period, } \$ 1,000 \\ \text { cash, credit terms of } 2 / 10 , \text { n/30. } \end{array} & & \\ \hline \text { g. } & \begin{array} { l } \text { Customer returned merchandise, } \$ 150 ; \text { the cost of the goxds } \\ \text { returned is } \$ 95 . \end{array} & & \\ \hline \text { h. } & \text { Purchased merchandise on acount, \$2,000 } & & \\ \hline \end{array}$
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.
$\begin{array} { | l | l | l | l | } \hline \text { a. } & \begin{array} { l } \text { Sold merchandise on acount, } \\\$ 750 .\end{array} & \text { Debits}& \text { Credits } \\\hline \text { b. } & \text { Collected a customer's account, \$800 cash, less a 2\% discount. } & & \\\hline \text { c. } & \text { Received and paid the monthly electric bill, } \$ 250 \text { cash. } & \\\hline \text { d. } & \text { Purchased office supplies on credit, \$100. } & & \\\hline \text { e. } & \text { Sold merchandise for cash, } \$ 500 . & & \\\hline \text { f. } & \begin{array} { l } \text { Paid a creditor for merchandise within the Discount period, } \$ 1,000 \\\text { cash, credit terms of } 2 / 10 , \text { n/30. }\end{array} & & \\\hline \text { g. } & \begin{array} { l } \text { Customer returned merchandise, } \$ 150 ; \text { the cost of the goxds } \\\text { returned is } \$ 95 .\end{array} & & \\\hline \text { h. } & \text { Purchased merchandise on acount, \$2,000 } & & \\\hline\end{array}$

Definitions:

NAFTA

The North American Free Trade Agreement, a treaty between the United States, Canada, and Mexico that eliminated most tariffs and trade barriers between the countries.

Comparative Advantage

The ability of an entity to produce a good or service at a lower opportunity cost than others.

Accounting Services

Professional services that include bookkeeping, audit, tax preparation, financial analysis, and consultancy related to financial management.

Offshoring

The practice of moving a part of a company's operations or business processes to another country to reduce costs or take advantage of favorable conditions.