Question

Record each of the following transactions in general journal form:

Oct. 1    Purchased merchandise on account from Jones Corporation, $8,000, credit terms    2/10,n/30.

        3   Purchased $3,000 of merchandise from Hilltop Caterers on account, Invoice 1234, with a 5% trade discount. Credit terms 2/10, n/30.

        7   Returned $1,500 of merchandise to Jones Corporation, receiving credit.

        11 Paid Jones Corporation the balance due within the discount period.

Date		Description	Post Ref.	Debit	Credit

Answer 1

Note

In General Trade Dicount will not be accounted in but where net Invoice amount less trade discount will be recorded.

Date	General Jouranl	Post Ref	$ Debit	$ Credit
Oct-01	Merchansides account	J1	8,000
	To Jones corporation			8,000
	( Being goods purchased on credit)
Oct-03	Merchandise account	J1
	To Hill Top Caters		2,850
	3000 - (3000 * 5%) = 2850			2,850
	( Being goods purchased with 5% trade discount)
Oct-07	Jones Corporation	J1	1500
	To merchandise account			1500
	( Being goods purchased retuned to creditor)
Oct-11	Jones Account	J1	6500
	To cash discount recevied			130
	To cash			6370
	( Being paid to creditor with 2 % cash discount )

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