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Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
Edition 22ISBN: 978-0077862275 Exercise 49
Post Pharmacy uses the following journals: sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. The following two transactions were processed.
On June 5, Post Pharmacy purchased merchandise priced at $14,000, subject to credit terms of 2/10, n/30. On June 14, Post Pharmacy paid the net amount due for the merchandise purchased on June 5.
In journalizing the June 14 payment, the pharmacy debited Accounts Payable for $14,000 but failed to record the cash discount on the purchase. Cash was properly credited for the actual $13,720 paid.
a. In what journals would the June 5 and the June 14 transactions be recorded
b. What procedure is likely to discover the error in journalizing the June 14 transaction
On June 5, Post Pharmacy purchased merchandise priced at $14,000, subject to credit terms of 2/10, n/30. On June 14, Post Pharmacy paid the net amount due for the merchandise purchased on June 5.
In journalizing the June 14 payment, the pharmacy debited Accounts Payable for $14,000 but failed to record the cash discount on the purchase. Cash was properly credited for the actual $13,720 paid.
a. In what journals would the June 5 and the June 14 transactions be recorded
b. What procedure is likely to discover the error in journalizing the June 14 transaction
Explanation
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Journals
The different journals in whic...
Fundamental Accounting Principles 22th Edition by John Wild ,Ken Shaw,Barbara Chiappetta
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