Answer:
General Journal Entries:
Aug. 6 Debit Inventory $830
Credit Accounts Payable (Johnston Co.) $830
To record the purchase of merchandise; Credit terms 2/10, n/30.
Aug. 8 Debit Truck $18,000
Credit Accounts Payable (Pillner Co.) $15,000
Credit Cash $3,000
To record the purchase of truck.
Aug. 13 Debit Inventory $2,611
Credit Cash $2,611
To record the purchase of inventory for cash.
Aug. 15 Debit Accounts Payable (Johnston Co.) $830
Credit Cash $813
Credit Cash Discounts $17
To record the payment on account, including discounts.
Aug. 17 Debit Inventory $1,743
Credit Accounts Payable (Luis Co.) $1,743
To record the purchase of goods; Credit terms 2/10, n/30.
Explanation:
a) Data and Analysis:
Aug. 6 Inventory $830 Accounts Payable (Johnston Co.) $830
Credit terms 2/10, n/30.
Aug. 8 Truck $18,000 Accounts Payable (Pillner Co.) $15,000 Cash $3,000
Aug. 13 Inventory $2,611 Cash $2,611
Aug. 15 Accounts Payable (Johnston Co.) $830 Cash $813 Cash Discounts $17
Aug. 17 Inventory $1,743 Accounts Payable (Luis Co.) $1,743
Credit terms 2/10, n/30.
