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Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. If an amount does not require an entry, leave it blank. Fuentes Company Sold merchandise on account to Lowe Company, $1,250; terms 1/10, n/30. Issued a credit memo to Lowe Company for damaged merchandise, $130. Lowe Company paid the account in full within the discount period. (please see images for questionaires)

Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. If an amount does not require an entry, leave it blank. Fuentes Company Sold merchandise on account to Lowe Company, $1,250; terms 1/10, n/30. Issued a credit memo to Lowe Company for damaged merchandise, $130. Lowe Company paid the account in full within the discount period. (please see images for questionaires)

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Record the following transactions in general journal form on the books of the seller (Fuentes Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. If an amount does not require an entry, leave it blank.

Fuentes Company

  1. Sold merchandise on account to Lowe Company, $1,250; terms 1/10, n/30.
  2. Issued a credit memo to Lowe Company for damaged merchandise, $130.
  3. Lowe Company paid the account in full within the discount period.
  4. (please see images for questionaires)
### General Journal Transactions #### Transaction (a) - **Description:** Sold merchandise to Lowe Company, terms 1/10, n/30. #### Transaction (b) - **Description:** Issued credit memo for return of merchandise. #### Transaction (c) - **Description:** Received payment in full. ### Lowe Company Details: 1. **Transaction (a):** - Purchased merchandise on account from Fuentes Company. - Amount: $1,250 - Terms: 1/10, n/30. 2. **Transaction (b):** - Received a credit memo from Fuentes Company for damaged merchandise. - Amount: $130 3. **Transaction (c):** - Paid Fuentes Company in full within the discount period.
Transcribed Image Text:### General Journal Transactions #### Transaction (a) - **Description:** Sold merchandise to Lowe Company, terms 1/10, n/30. #### Transaction (b) - **Description:** Issued credit memo for return of merchandise. #### Transaction (c) - **Description:** Received payment in full. ### Lowe Company Details: 1. **Transaction (a):** - Purchased merchandise on account from Fuentes Company. - Amount: $1,250 - Terms: 1/10, n/30. 2. **Transaction (b):** - Received a credit memo from Fuentes Company for damaged merchandise. - Amount: $130 3. **Transaction (c):** - Paid Fuentes Company in full within the discount period.
**General Journal Template for Educational Use** **Page: ___** --- **Transaction: (a)** - **Description:** Purchased merchandise from Fuentes Company, terms 1/10, n/30. | Post. Ref. | Debit | Credit | --- **Transaction: (b)** - **Description:** Received credit memo for damaged merchandise. | Post. Ref. | Debit | Credit | --- **Transaction: (c)** - **Description:** Paid invoice in full. | Post. Ref. | Debit | Credit | --- **Explanation:** This template is a sample general journal used to record financial transactions. 1. **Description Breakdown:** - **Purchased Merchandise:** This entry notes the purchase from Fuentes Company with specific payment terms of 1/10, net 30, indicating a 1% discount if paid within 10 days, otherwise the net amount is due in 30 days. - **Received Credit Memo:** This entry records a credit received for merchandise that was damaged. - **Paid Invoice:** This entry shows the payment made to settle the invoice completely. 2. **Columns Explanation:** - **Post. Ref.:** This column is used to add reference numbers for each transaction. - **Debit and Credit:** These columns are meant to record the financial amounts accordingly, based on standard accounting principles. This template serves as an educational tool for students learning about journal entries in accounting.
Transcribed Image Text:**General Journal Template for Educational Use** **Page: ___** --- **Transaction: (a)** - **Description:** Purchased merchandise from Fuentes Company, terms 1/10, n/30. | Post. Ref. | Debit | Credit | --- **Transaction: (b)** - **Description:** Received credit memo for damaged merchandise. | Post. Ref. | Debit | Credit | --- **Transaction: (c)** - **Description:** Paid invoice in full. | Post. Ref. | Debit | Credit | --- **Explanation:** This template is a sample general journal used to record financial transactions. 1. **Description Breakdown:** - **Purchased Merchandise:** This entry notes the purchase from Fuentes Company with specific payment terms of 1/10, net 30, indicating a 1% discount if paid within 10 days, otherwise the net amount is due in 30 days. - **Received Credit Memo:** This entry records a credit received for merchandise that was damaged. - **Paid Invoice:** This entry shows the payment made to settle the invoice completely. 2. **Columns Explanation:** - **Post. Ref.:** This column is used to add reference numbers for each transaction. - **Debit and Credit:** These columns are meant to record the financial amounts accordingly, based on standard accounting principles. This template serves as an educational tool for students learning about journal entries in accounting.
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