Question

A) Journalize the purchase of a $3,800 motorcycle on credit.

B) Journalize a customer pays an entity for credit purchase of $3,800

C) Journalize Dec. 5, Ace Company recognizes that it is never going to collect the $3,000 owed by Harder.

No other information was given.

Answer 1

Sr. No	Particulars	LF	Debit ($)	Credit ($)
A	Motorcycle A/c Dr		3800
	To Creditor's A/c			3800
	(Being motor cycle purchased on Credit)
B	Cr. Purchases A/c Dr		3800
	To Cash A/c			3800
	(Being customer pays an entity for credit purchase
C.	Unearned Revenue A/c Dr		3000
	To Harder A/c			3000
	(Being unearned revenue recorded)