Question

Journalizing Cash Payments Transactions

Enter the following cash payments transactions in a general journal:
Sept. 5 Issued Check No. 318 to Georgetown Inc. for merchandise purchased
August 28, $5,500, terms 2/10, n/30. Payment is made within the discount
period.
12 Issued Check No. 319 to Martin Company for merchandise purchased
September 2, $7,500, terms 1/10, n/30. A credit memo had been received
on September 8 from Martin Company for merchandise returned, $500.
Payment is made within the discount period after deduction for the return
dated September 8.
19 Issued Check No. 320 to Professional Partners for merchandise purchased
August 20, $4,000, terms n/30.
27 Issued Check No. 321 to Dynamic Data for merchandise purchased
September 17, $9,000, terms 2/10, n/30. Payment is made within the
discount period.

Answer 1

Journalizing Cash Payments Transactions

General Journal

Sept. 5 Debit Accounts payable (Georgetown Inc.) $5,500

Credit Cash $5,390

Credit Cash Discounts $110

To record the issue of Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30, including discounts.

Sept. 12 Debit Accounts payable (Martin Company) $7,000

Credit Cash $6,930

Credit Cash Discounts $70

To record the issue of Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.

Sept. 19 Debit Accounts payable (Professional Partners) $3,400

Credit Cash $3,400

To record the issue of Check No. 320 for merchandise purchased August 20 on terms n/30.

27 Debit Accounts payable (Dynamic Data) $9,000

Credit Cash $8,820

Credit Cash Discounts $180

To record the issue of Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.

Step-by-step explanation:

a) Data and Analysis:

Sept. 5 Accounts payable (Georgetown Inc.) $5,500 Cash $5,390 Cash Discounts $110 Issued Check No. 318 for merchandise purchased August 28 on terms 2/10, n/30.

Sept. 12 Accounts payable (Martin Company) $7,000 Cash $6,930 Cash Discounts $70 Issued Check No. 319 for merchandise purchased September 2 on terms 1/10, n/30.

Sept. 19 Accounts payable (Professional Partners) $3,400 Cash $3,400 Issued Check No. 320 for merchandise purchased August 20 on terms n/30.

27 Accounts payable (Dynamic Data) $9,000 Cash $8,820 Cash Discounts $180 Issued Check No. 321 for merchandise purchased September 17 on terms 2/10, n/30.