Question

Question 2--/1 View Policies Current Attempt in Progress This information relates to Cullumber Co.. 1. On April 5, purchased merchandise from Oriole Company for $27,900 on account. 2. On April 7, purchased equipment on account for $31,600. 3. On April 8, returned $3,700 of April 5 merchandise to Oriole Company. 4. On April 15, paid the amount due to Oriole Company in full. Prepare a tabular summary to record the transactions listed above for Rice Co. using a perpetual inventory system. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

Answer 1

Answer:

             Cash    Inventory Equipment Accounts Payable

April 5th           27,900.00                      27,900.00

April 7th                            31,600.00      31,600.00

April 8th            (3,700.00)                       (3,700.00)

April 15th  (24,200.00)                              (24,200.00)

Explanation:

Instead of using a journal we record horizontally:.

We write the accounts and post under each one the values for each transactions