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Disbursements) as well as a General Journal. For this question, you will only be recording the transactions that belong in the Purchases, Cash Disbursements and General Journals.

Disbursements) as well as a General Journal. For this question, you will only be recording the transactions that belong in the Purchases, Cash Disbursements and General Journals.

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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Please answer all parts with detailed calculations and good formatting and make sure the answer is 100% correct, else leave it for the other tutor to answer. Otherwise i will downvote the answer and report it for uprofessionalism for sure. Please don't use AI or Chat GPT also make sure there is no plagiari.sm.  

n Rotary Company uses four special journals (Sales, Cash Receipts, Purchases and Cash Disbursements) as well as a General Journal. For this question, you will only be recording the transactions that belong in the Purchases, Cash Disbursements and General Journals. The following transactions occurred during May 2020. The company uses a perpetual inventory system. May 2 Purchased merchandise inventory from Franky Co., invoice dated May 2nd terms 2/10, n/30, $6,200. 4 Sold merchandise on credit to Lenten Inc. for $6,750, terms 2/10, n/30, Invoice # 543. Cost of merchandise inventory was $2,700. 6 Received a $400 credit memorandum from Franky Co. for merchandise inventory received on May 2nd and returned for credit. 11 Issued cheque # 655 to Franky Co. to pay its May 2nd invoice. 12 Received payment from Lenten Inc. for the balance owing on their account. 17 Purchased Office Supplies from Queen Co. for $450, terms 2/10, n/30. 29 Paid MTS for the monthly telephone bill, $325, cheque # 656. 31 Recorded cash sales for the month, $13,000. Cost of merchandise, $9,000. REQUIRED: Record the above transactions for Rotary Company in the special journals provided as appropriate. Note: It is not necessary to provide totals for the journals.
Transcribed Image Text:n Rotary Company uses four special journals (Sales, Cash Receipts, Purchases and Cash Disbursements) as well as a General Journal. For this question, you will only be recording the transactions that belong in the Purchases, Cash Disbursements and General Journals. The following transactions occurred during May 2020. The company uses a perpetual inventory system. May 2 Purchased merchandise inventory from Franky Co., invoice dated May 2nd terms 2/10, n/30, $6,200. 4 Sold merchandise on credit to Lenten Inc. for $6,750, terms 2/10, n/30, Invoice # 543. Cost of merchandise inventory was $2,700. 6 Received a $400 credit memorandum from Franky Co. for merchandise inventory received on May 2nd and returned for credit. 11 Issued cheque # 655 to Franky Co. to pay its May 2nd invoice. 12 Received payment from Lenten Inc. for the balance owing on their account. 17 Purchased Office Supplies from Queen Co. for $450, terms 2/10, n/30. 29 Paid MTS for the monthly telephone bill, $325, cheque # 656. 31 Recorded cash sales for the month, $13,000. Cost of merchandise, $9,000. REQUIRED: Record the above transactions for Rotary Company in the special journals provided as appropriate. Note: It is not necessary to provide totals for the journals.
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