At the End of February 2013 and Before the Purchases

question 59

Essay

At the end of February 2013 and before the purchases journal was posted, selected general ledger account balances for Volter Repair Services were as follows (each account had a normal balance): The purchases journal had the following totals: Purchases, $28,000; Freight In, $1,000; Accounts Payable, $29,000.
Calculate the ending balance of each of the three accounts after the posting from the purchases journal. Indicate whether each balance is a debit or credit.

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Definitions:

European Union

A political and economic union of 27 European countries that are located primarily in Europe, aiming to foster economic cooperation and create a barrier-free single market.

Common Currency

A common currency is a currency that is used by multiple countries, facilitating trade and economic policy coordination.

Comparative Advantage

The ability of an individual, firm, or country to produce a good or service at a lower opportunity cost than competitors.

Offshoring

The practice of relocating business processes or production to another country, often to reduce costs or take advantage of favorable economic conditions.