Office supplies6,200Salaries expense32,000Office equipment58,3001,290Miscellaneous expensesLand24,300140,000Retained earnings, July 1Sales152,250160,000Common stockCash dividends5,300Accounts payable2,0004.The following are selected transactions of Drcman, Inc.:May 1016Sold and shipped on account to Linley, Inc. merchandise for $2,300, terms 2/10, n/30.Linley, Inc. returned merchandise billed at $600 on May 10.Received a check from Linley, Inc. for full settlement of the May 10 transaction.19Record the above transactions in general journal form as they would appear on the books of (a) Drcman,Inc. and (b) Linley, Inc. Linley, Inc. records purchases at invoice price. Both companies use the periodicinventory system. Omit explanations for the journal entries.The following are selected transactions of Midnight, Inc.:Sold and shipped on account to Sirius, Inc. merchandise for $3,000 ($1,800 cost), terms2/10, n/30.May 10

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Asked Sep 19, 2019
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Please help with practice problem #4 for a and b. 

Office supplies
6,200
Salaries expense
32,000
Office equipment
58,300
1,290
Miscellaneous expenses
Land
24,300
140,000
Retained earnings, July 1
Sales
152,250
160,000
Common stock
Cash dividends
5,300
Accounts payable
2,000
4.
The following are selected transactions of Drcman, Inc.:
May 10
16
Sold and shipped on account to Linley, Inc. merchandise for $2,300, terms 2/10, n/30.
Linley, Inc. returned merchandise billed at $600 on May 10.
Received a check from Linley, Inc. for full settlement of the May 10 transaction.
19
Record the above transactions in general journal form as they would appear on the books of (a) Drcman,
Inc. and (b) Linley, Inc. Linley, Inc. records purchases at invoice price. Both companies use the periodic
inventory system. Omit explanations for the journal entries.
The following are selected transactions of Midnight, Inc.:
Sold and shipped on account to Sirius, Inc. merchandise for $3,000 ($1,800 cost), terms
2/10, n/30.
May 10
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Office supplies 6,200 Salaries expense 32,000 Office equipment 58,300 1,290 Miscellaneous expenses Land 24,300 140,000 Retained earnings, July 1 Sales 152,250 160,000 Common stock Cash dividends 5,300 Accounts payable 2,000 4. The following are selected transactions of Drcman, Inc.: May 10 16 Sold and shipped on account to Linley, Inc. merchandise for $2,300, terms 2/10, n/30. Linley, Inc. returned merchandise billed at $600 on May 10. Received a check from Linley, Inc. for full settlement of the May 10 transaction. 19 Record the above transactions in general journal form as they would appear on the books of (a) Drcman, Inc. and (b) Linley, Inc. Linley, Inc. records purchases at invoice price. Both companies use the periodic inventory system. Omit explanations for the journal entries. The following are selected transactions of Midnight, Inc.: Sold and shipped on account to Sirius, Inc. merchandise for $3,000 ($1,800 cost), terms 2/10, n/30. May 10

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Expert Answer

Step 1

Journal entries in the books of Drcman Inc.

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Journal entries in the books of Drcman Inc. Post Ref Debit(S) Credit(S) Date Particulars Accounts Receivable 2,300 10-May Sales 2,300 (To record merchandise sold) Post Ref Debit(S) | Credit(S) Particulars Sales returns and allowances Date 600 16-May 600 Account receivable (To record merchandise returned) Post Ref Debit(S) Credit(S) Particulars Date Bank 1,666 Sales discounts 19-MayAccounts receivable 34 1,700 (To record payment received)

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Step 2

Journal entries in the books of L...

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Journal entries in the books of Linley Inc Post Ref Debit(S) Credit(S) 2,300 Date Particulars Purchases Account payable 2,300 10-May (To record merchandise purchased) 46 Post Ref Debit($) Credit(S) Date Particulars Accounts payable Purchase return (To record merchandise returned) 600 16-May 600 Post Ref Debit(S) Credit(S) Particulars Accounts payable Date 1,700 Bank 1,666 19-May Purchase discounts 34 (To record payment made to supplier)

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