Transaction Recording a. Henry Associates paid $490 on account for an earlier Purchases journal purchase of merchandise inventory. b. Recorded depreciation expense for the month. Cash payments journal c. Collected interest revenue. Cash receipts journal d. Sold merchandise inventory on account. Cash receipts journal Purchases journal e. Issued check no. 535 for purchase of merchandise inventory. f. Returned damaged inventory that was purchased on Purchases journal account. g. Sold merchandise inventory for cash. Sales journal

Transaction Recording a. Henry Associates paid $490 on account for an earlier Purchases journal purchase of merchandise inventory. b. Recorded depreciation expense for the month. Cash payments journal c. Collected interest revenue. Cash receipts journal d. Sold merchandise inventory on account. Cash receipts journal Purchases journal e. Issued check no. 535 for purchase of merchandise inventory. f. Returned damaged inventory that was purchased on Purchases journal account. g. Sold merchandise inventory for cash. Sales journal

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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Question

Identifying errors in special journals

For each transaction listed, identify the recording error and indicate the journal that should have been used.

Transaction
Recording
a. Henry Associates paid $490 on account for an earlier Purchases journal
purchase of merchandise inventory.
b. Recorded depreciation expense for the month.
Cash payments journal
c. Collected interest revenue.
Cash receipts journal
d. Sold merchandise inventory on account.
Cash receipts journal
Purchases journal
e. Issued check no. 535 for purchase of merchandise
inventory.
f. Returned damaged inventory that was purchased on Purchases journal
account.
g. Sold merchandise inventory for cash.
Sales journal

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