Question

Emily Frank owns a small retail business called Frank's Fantasy. The cash account has a balance of $21,000 on July 1. The following transactions occurred during July:

1. Issued check no. 414 in payment of July rent, $2,500.
2. Purchased merchandise on account from Tilly's Toys, invoice no. 311, $2,800, terms 2/10, n/30.
3. Purchased merchandise on account from Scheer.

What is the total amount of purchases and cash payments transactions made by Emily Frank's business in July?

Answer 1

The total cash payments made by Emily Frank's business in July is $2,500 for rent, and the purchases on account are $2,800 from Tilly's Toys, totaling $5,300 in recorded transactions.

Step-by-step explanation:

The total amount of purchases Emily Frank's business made in July would include the merchandise bought on account from Tilly's Toys, which is $2,800. However, to calculate total cash payments, we have the cash paid for the July rent via check no. 414, which is $2,500. Without more information on the merchandise purchased from Scheer, only the mentioned transactions can be considered. Therefore, the total cash payments made by Frank's Fantasy in July is $2,500, and the total purchases on account is $2,800, summing up to $5,300 in transactions that can be recorded.