Answer:
Backcountry Kayak Excursions - Purchases Journal
Supplier's Payment Accounts
<u>Date</u> <u>account</u> <u>Item</u> <u>terms </u> <u>payable</u> <u>Inventory</u>
Aug 1 Gear Inc. Equipment* On account $471 $471
Aug 6 Southland Supplies* On account $701 $701
Aug 14 Gear Inc. Supplies* On account $3,558 $3,558
Total $4,730 $4,730
Because there is not enough room here, i just recorded the purchases as either equipment or supplies, but you can also record them in a more detailed manner.
- Equipment: Kevlar kayaks
- Supplies: paddles
- Supplies: life vests
The payment terms are either on account or cash purchases. If the purchases are made on cash, they will not increase accounts payable.
Since this is a retailer, the items purchased are allocated to inventory, but in other cases they could be allocated to different departments, e.g. sales, manufacturing, etc.