Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter. 1. Purchase of merchandise with cash. Post the transactions in the given order. Merchandise is purchased for cash, $1,100. Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash. Cash ________ | _______ ________ | _______ Purchases ______ | ______ ______ | ______ 2. uploded picture 3. up loaded picture
Purchase Transactions and T Accounts
Using T accounts for Cash, Accounts Payable, Purchases, Purchases Returns and Allowances, Purchases Discounts, and Freight-In, enter the following purchase transactions. Identify each transaction with its corresponding letter.
1. Purchase of merchandise with cash.
Merchandise is purchased for cash, $1,100.
Merchandise listed at $3,500, less a trade discount of 15%, is purchased for cash.
Cash
________ | _______
________ | _______
Purchases
______ | ______
______ | ______
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4. Purchase of merchandise with freight-in.
A. Merchandise is purchased on account, $2,300 plus freight charges of $100. Terms of the sale were FOB shipping point.
B. Payment is made for the cost of the merchandise and the freight charge.
Cash
Accounts Payable
Purchases
Freight- In
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