Question

18. On July 1, ACME Company purchased some washing machines to sell to its customers. They paid $1,000 in cash. Prepare the general journal entry to record this transaction.

19. On June 30, 2018 ACME Company purchased some washing machines to sell to its customers. They bought the washing machines on credit. The washing machines cost $2,000. The terms were 2/15, n45. Prepare the general journal entry to record this transaction.

20. Use the above information from Question # 19 to answer this question. On July 11,2018, ACME Company paid the invoice. Prepare the general journal entry to record this transaction.

21. ACME Company paid for the costs to ship the washing machines from question # 19. The cost was $100. Prepare the general journal entry to record this transaction.

22. ACME Company made the seller pay the costs to ship the washing machines from question # 19. The cost was $100. Prepare the general journal entry to record this transaction.

23. On July 31, 2018, Z-Mart issued a $500 debit memo for an allowance from Trex for defective merchandise. Prepare the general journal entry to record this transaction.

24. On July 1, Z-Mart purchased goods on terms of FOB shipping point. The transportation costs are $75. Prepare the general journal entry to record this transaction.

Answer 1

	Journal entries
Date	Particulars	Dr.	Cr.
June, 30	Purchases a/c	2,000
	To Creditors or Accounts payable a/c		2,000
	(being purchase of washing machine on credit and terms of invoice is 2/15, n45)
July, 1	Purchase a/c	1,000
	To Cash a/c		1,000
	(being purchase made in cash)
July, 11	Creditors or Accounts payable a/c	2,000
	To Cash a/c ($2000 * 98%)		1,960
	To Purchase discount a/c		40
	(being payment for invoice 2/15, n45 dated June, 30)
July, 11	Freight in expenses a/c	100
	To Cash a/c		100
	(being freight expenses paid in cash)