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PURCHASE TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Use a new set of T accounts for each set of transactions, 1–4. 1. Purchase of merchandise with cash. (a) Merchandise is purchased for cash, $2,300. (b) Merchandise listed at $4,000, less a trade discount of 10%, is purchased for cash. 2. Purchase of merchandise on account with credit terms. (a) Merchandise is purchased on account, credit terms 2/10, n/30, $4,000. (b) Merchandise is purchased on account, credit terms 3/10, n/30, $2,800. (c) Payment is made on invoice (a) within the discount period. (d) Payment is made on invoice (b) too late to receive the cash discount. 3. Purchase of merchandise on account with return of merchandise. (a) Merchandise is purchased on account, credit terms 2/10, n/30, $5,600. (b) Merchandise is returned for credit before payment is made, $600. (c) Payment is made within the discount period. 4. Purchase of merchandise with freight-in. (a) Merchandise is purchased on account, $3,800 plus freight charges of $200. Terms of the sale were FOB shipping point. (b) Payment is made for the cost of merchandise and the freight charge.

BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756
BuyFind

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
Publisher: Cengage Learning,
ISBN: 9781337794756

Solutions

Chapter
Section
Chapter 11, Problem 3SEB
Textbook Problem

PURCHASE TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. Use a new set of T accounts for each set of transactions, 1–4.

  1. 1. Purchase of merchandise with cash.
    1. (a) Merchandise is purchased for cash, $2,300.
    2. (b) Merchandise listed at $4,000, less a trade discount of 10%, is purchased for cash.
  2. 2. Purchase of merchandise on account with credit terms.
    1. (a) Merchandise is purchased on account, credit terms 2/10, n/30, $4,000.
    2. (b) Merchandise is purchased on account, credit terms 3/10, n/30, $2,800.
    3. (c) Payment is made on invoice (a) within the discount period.
    4. (d) Payment is made on invoice (b) too late to receive the cash discount.
  3. 3. Purchase of merchandise on account with return of merchandise.
    1. (a) Merchandise is purchased on account, credit terms 2/10, n/30, $5,600.
    2. (b) Merchandise is returned for credit before payment is made, $600.
    3. (c) Payment is made within the discount period.
  4. 4. Purchase of merchandise with freight-in.
    1. (a) Merchandise is purchased on account, $3,800 plus freight charges of $200. Terms of the sale were FOB shipping point.
    2. (b) Payment is made for the cost of merchandise and the freight charge.

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Chapter 11 Solutions

College Accounting, Chapters 1-27
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Ch. 11 - Deering Housewares purchased merchandise for 1,200...Ch. 11 - Based on the following data for Daves Supply...Ch. 11 - The following journal entries are for current...Ch. 11 - On June 23, Felini Plumbings accounts payable...Ch. 11 - Identify the major documents commonly used in the...Ch. 11 - Distinguish between a cash discount and a trade...Ch. 11 - What is a voucher system?Ch. 11 - In a voucher system, a payment is supported by...Ch. 11 - Describe how each of the following accounts is...Ch. 11 - How are cost of goods sold and gross profit...Ch. 11 - What steps are followed in posting purchases from...Ch. 11 - What steps are followed in posting purchases from...Ch. 11 - What steps are followed in posting purchases...Ch. 11 - What steps are followed in posting cash payments...Ch. 11 - What steps are followed in posting cash payments...Ch. 11 - If the total of the schedule of accounts payable...Ch. 11 - PURCHASING DOCUMENTS AND FLOWCHART LABELING A...Ch. 11 - TRADE DISCOUNT AND CASH DISCOUNTS Merchandise was...Ch. 11 - PURCHASE TRANSACTIONS AND T ACCOUNTS Using T...Ch. 11 - COMPUTING GROSS PROFIT The following data were...Ch. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - JOURN ALIZING CASH PAYMENTS TR ANS ACTIONS Enter...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Ryans Express, a...Ch. 11 - PURCHASES TRANSACTIONS J. B. Speck, owner of...Ch. 11 - CASH PAYMENTS TR ANS ACTIONS Sam Santiago operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Emily...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - PURCHASING DOCUMENTS AND FLOWCHART LABELING A...Ch. 11 - TRADE DISCOUNT AND CASH DISCOUNTS Merchandise was...Ch. 11 - PURCHASE TRANSACTIONS AND T ACCOUNTS Using T...Ch. 11 - COMPUTING GROSS PROFIT The following data were...Ch. 11 - JOURNALIZING PURCHASES TRANSACTIONS Journalize the...Ch. 11 - JOURNALIZING PURCHASES RETURNS AND ALLOWANCES AND...Ch. 11 - JOURN ALIZING CASH PAYMENTS TR ANS ACTIONS Enter...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Crystals Candles, a...Ch. 11 - PURCHASES TRANSACTIONS Ann Benton, owner of...Ch. 11 - CASH PAYMENTS TRANSACTIONS Kay Zembrowski operates...Ch. 11 - PURCHASES AND CASH PAYMENTS TRANSACTIONS Debbie...Ch. 11 - SCHEDULE OF ACCOUNTS PAYABLE Based on the...Ch. 11 - You are working as a summer intern at a rapidly...Ch. 11 - Bobs Discount Auto Parts receives a cash discount...Ch. 11 - Michelle French owns and operates Books and More,...Ch. 11 - Record the following transactions in a general...

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