Problem

Professional Office Products Center is a retail business that sells office equipment, furn...

Professional Office Products Center is a retail business that sells office equipment, furniture, and supplies. Its credit purchases and purchases returns and allowances for September are shown on the next page. The general ledger accounts and the creditors’ accounts in the accounts payable subsidiary ledger used to record these transactions are also provided. All balances shown are for the beginning of September.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balance of Accounts Payable for September 1, 2013.
2. Open the creditors’ accounts in the accounts payable subsidiary ledger and enter the balances for September 1.
3. Record the transactions in a three-column purchases journal and in a general journal. Use 5 as the page number for the purchases journal and 14 as the page number for the general journal.
4. Post to the accounts payable subsidiary ledger daily.
5. Post the entries from the general journal to the proper general ledger accounts at the end of the month.
6. Total and rule the purchases journal as of September 30.
7. Post the column totals from the purchases journal to the proper general ledger accounts.
8. Prepare a schedule of accounts payable and compare the balance of the Accounts Payable control account with the schedule of accounts payable.

GENERAL LEDGER ACCOUNTS

205	Accounts Payable, $28,256 Cr.	502	Freight In
501	Purchases	503	Purchases Returns and Allowances

DATE	TRANSACTIONS
Sept. 3	Purchased desks for $7,920 plus a freight charge of $212 from Dalton Office Furniture Company, Invoice 4213, dated August 29; the terms are 30 days net.
7	Purchased computers for $11,300 from Apex Office Machines, Inc., Invoice 9217, dated September 2, net due and payable in 60 days.
10	Received Credit Memorandum 511 for $600 from Dalton Office Furniture Company; the amount is an allowance for damaged but usable desks purchased on Invoice 4213, dated August 29.
16	Purchased file cabinets for $2,556 plus a freight charge of $124 from Davis Corporation, Invoice 8066, dated September 11; the terms are 30 days net.
20	Purchased electronic desk calculators for $1,000 from Apex Office Machines, Inc., Invoice 11011, dated September 15, net due and payable in 60 days.
23	Purchased bond paper and copy machine paper for $7,500 plus a freight charge of $100 from Brown Paper Company, Invoice 6498, dated September 18; the terms are 1/10, n/30.
28	Received Credit Memorandum 312 for $880 from Apex Office Machines, Inc., for defective calculators that were returned; the calculators were originally purchased on Invoice 11011, dated September 15.
30	Purchased office chairs for $3,840 plus a freight charge of $160 from Zenn Furniture, Inc., Invoice 696, dated September 25, the terms are 2/10, n/30.

Analyze: What total amount was recorded for purchases returns and allowances in the month of September? What percentage of total purchases does this represent?

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