Answer:
January 1.
Merchandise $65,000 (debit)
Accounts Payable - ALMIS Co. $65,000 (credit)
January 2.
Merchandise $65,000 (debit)
Freight Charges Paid in Advance $650 (debit)
Accounts Payable - AlFA. Co. $65,000 (credit)
Cash $650 (credit)
January 3.
Merchandise $91,000 (debit)
Accounts Payable - fogel Co. $91,000 (credit)
January 4.
Accounts Payable - fogel Co. $7,000 (debit)
Merchandise $7,000 (credit)
January 5.
Accounts Payable - AlFA. Co. $65,000 (credit)
Discount Received $1,300 (credit)
Cash $63,700 (credit)
January 6.
Accounts Payable - fogel Co. $84,000 (credit)
Discount Received $1,600 (credit)
Cash $82,400 (credit)
January 7.
Merchandise $82,900 (debit)
Freight $750 (debit)
Accounts Payable - u I trust Co. $82,900 (credit)
Accounts Payable - Carrier Service Provider $750 (credit)
January 19
Accounts Payable - Carrier Service Provider $750 (debit)
Cash $750 (credit)
January 9
Merchandise $10,000 (debit)
Accounts Payable - Lenn Co. $10,000 (credit)
January 10
Accounts Payable - Lenn Co. $10,000 (credit)
Discount Received $100 (credit)
Cash $9,900 (credit)
January 31
Accounts Payable - u I trust Co. $82,900 (debit)
Cash $82,900 (credit)
Explanation:
When Merchandise is Purchased on Account, Recognize the Assets of Merchandise and Recognize the Liability owing to the Supplier.
When Merchandise is finally paid for, De-recognize the Liability owing to the supplier (less discount applicable) and also De-recognize the Assets of Cash.
