A company purchases office supplies worth $3,000 on credit. Later,they pay $1,200 in cash for part of the supplies purchased. After amonth, they realize $300 worth of supplies were defective and returnthem, receiving a refund. What are the entries for these transactions inthe company's accounts? XYZ Company, a small retail business,started the month with $15,000 in cash and inventory worth $25,000.During the month, the company purchased additional inventory worth$10,000 on credit and made sales totalling $20,000, of which $5,000was cash sales and the rest was on account. The cost of the inventorysold was $12,000. By the end of the month, the company paid $6,000to suppliers for inventory purchases. Additionally, the companyincurred $3,000 in operating expenses, which were all paid in cash.Prepare the journal entries for each transaction and calculate the endingbalances for Cash, Accounts Receivable, Inventory, Accounts Payable,and Retained Earnings.

Step 1: The company purchased office supplies worth $3,000 on credit, which increases both the asset…

Answered: A company purchases office supplies…

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter14: Adjustments For A Merchandising Business

Section: Chapter Questions

Problem 1CP: Block Foods, a retail grocery store, has agreed to purchase all of its merchandise from Square...

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