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Purchase Transactions and T AccountsUsing 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. Post the transactions in the given order.
Purchase of merchandise with cash.
a. Merchandise is purchased for cash, $1,500.
b. Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash.

Sagot :

Parrain

Answer:

Dr                                                     Cash a/c                                                  Cr

                                                                                Purchases(a)                $1,500

                                                                                Purchases(b)                $2,975

Dr                                                     Purchases a/c                                             Cr

Cash(a)                                $1,500

Cash(b)                                $2,975

The above are the entries in the Cash and Purchases accounts.

The purchases are credited to the cash account and debited to the purchases.

b. Merchandise = 3,500 * ( 1 - 15% discount)

= $2,975

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