The three-column purchases journal handles the purchase of merchandise on account and freight charges that are prepaid by the seller and included in the invoice total. Amounts in the Accounts Payable credit column are posted daily to the accounts payable ledger. At the end of the month, the totals are posted to the general ledger as a debit to Purchases, a debit to Freight In, and a credit to Accounts Payable. Record the following purchases of merchandise on account on page 65 of the purchases journal and then post to the general ledger. (The company uses the same account numbers as Whitewater Raft Supply.) • Feb. 5 Bought merchandise on account from Nancy Corporation, invoice no. A552, $752; terms net 30 days; dated January 3; FOB destination. • Feb. 21 Bought merchandise on account from Allen Company, invoice no. 8545, $1,524.41; n/30; dated February 19; FOB shipping point, freight prepaid and added to the invoice, $150 (total $1,674.41). If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. PURCHASES JOURNAL PAGE 65 DATE SUPPLIER'S NAME INV INV. POST. NO. DATE TERMS REF. ACCOUNTS PAYABLE CR. FREIGHT IN PURCHASES DR. DR. 20-- Feb. 5 Nancy Corp. A552 1/3 n/30 Feb. 21 Allen Company 8545 2/19 n/30 Feb. 28 Totals (212) (514) (511)
The three-column purchases journal handles the purchase of merchandise on account and freight charges that are prepaid by the seller and included in the invoice total. Amounts in the Accounts Payable credit column are posted daily to the accounts payable ledger. At the end of the month, the totals are posted to the general ledger as a debit to Purchases, a debit to Freight In, and a credit to Accounts Payable. Record the following purchases of merchandise on account on page 65 of the purchases journal and then post to the general ledger. (The company uses the same account numbers as Whitewater Raft Supply.) • Feb. 5 Bought merchandise on account from Nancy Corporation, invoice no. A552, $752; terms net 30 days; dated January 3; FOB destination. • Feb. 21 Bought merchandise on account from Allen Company, invoice no. 8545, $1,524.41; n/30; dated February 19; FOB shipping point, freight prepaid and added to the invoice, $150 (total $1,674.41). If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. PURCHASES JOURNAL PAGE 65 DATE SUPPLIER'S NAME INV INV. POST. NO. DATE TERMS REF. ACCOUNTS PAYABLE CR. FREIGHT IN PURCHASES DR. DR. 20-- Feb. 5 Nancy Corp. A552 1/3 n/30 Feb. 21 Allen Company 8545 2/19 n/30 Feb. 28 Totals (212) (514) (511)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:The three-column purchases journal handles the purchase of merchandise on account and freight charges that are prepaid by the seller and included in the invoice total.
Amounts in the Accounts Payable credit column are posted daily to the accounts payable ledger. At the end of the month, the totals are posted to the general ledger as a
debit to Purchases, a debit to Freight In, and a credit to Accounts Payable.
Record the following purchases of merchandise on account on page 65 of the purchases journal and then post to the general ledger. (The company uses the same account
numbers as Whitewater Raft Supply.)
• Feb. 5 Bought merchandise on account from Nancy Corporation, invoice no. A552, $752; terms net 30 days; dated January 3; FOB destination.
• Feb. 21 Bought merchandise on account from Allen Company, invoice no. 8545, $1,524.41; n/30; dated February 19; FOB shipping point, freight prepaid and added to the
invoice, $150 (total $1,674.41).
If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
PURCHASES JOURNAL
PAGE 65
DATE
SUPPLIER'S
NAME
INV
INV.
POST.
NO. DATE TERMS REF.
ACCOUNTS
PAYABLE
CR.
FREIGHT IN
PURCHASES
DR.
DR.
20--
Feb. 5
Nancy Corp.
A552 1/3 n/30
Feb. 21
Allen Company
8545 2/19 n/30
Feb. 28
Totals
(212)
(514)
(511)
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