Problem

Identifying journals used to record purchases and related transactions.The following trans...

Identifying journals used to record purchases and related transactions.

The following transactions took place at Extreme Bikers. Indicate the general ledger account numbers that would be debited and credited to record each transaction.

GENERAL LEDGER ACCOUNTS

101 Cash

205 Accounts Payable

501 Purchases

502 Freight In

503 Purchases Returns and Allowances

TRANSACTIONS

1. Purchased merchandise for $1,500; the terms are 2/10, n/30.

2. Returned damaged merchandise to a supplier and received a credit memorandum for $300.

3. Issued a check for $800 to a supplier as a payment on account.

4. Purchased merchandise for $2,400 plus a freight charge of $260; the supplier’s invoice is payable in 30 days.

5. Received an allowance for merchandise that was damaged but can be sold at a reduced price; the supplier’s credit memorandum is for $400.

6. Purchased merchandise for $4,200 in cash.

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