You are to show the journal entries necessary to record the following items which occurred in 20x2: (a) May 1 Bought a van on credit from ABC Company, $6000. (b) May 2 A debt of $100 owing from DEF company was written off as a bad debt. (c) May 8 Office furniture bought by use for $600 was returned to the trade payables Timewas Ltd, as it was unsuitable. Full allowance will be given to us. (d) May 12 We are owed $500 by R. Jackson. He is declared bankrupt and we received $200 in full settlement of the debt. (e) May 14 We take goods costing $20 out of the business inventory without paying for them. (f) May 28 Some time ago we paid an insurance bill thinking that it was all in respect of the business. We now discover that $80 of the amount paid was in fact insurance of our private house. (g) May 28 Bought machinery for $2400 on credit from Alfa Ltd.
You are to show the
(a) May 1 Bought a van on credit from ABC Company, $6000.
(b) May 2 A debt of $100 owing from DEF company was written off as a
(c) May 8 Office furniture bought by use for $600 was returned to the trade payables Timewas Ltd, as it was unsuitable. Full allowance will be given to us.
(d) May 12 We are owed $500 by R. Jackson. He is declared bankrupt and we received $200 in full settlement of the debt.
(e) May 14 We take goods costing $20 out of the business inventory without paying for them.
(f) May 28 Some time ago we paid an insurance bill thinking that it was all in respect of the business. We now discover that $80 of the amount paid was in fact insurance of our private house.
(g) May 28 Bought machinery for $2400 on credit from Alfa Ltd.
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