Question

Rite Shoes was involved in the transactions described below. Journal each transaction. If an entry is not required, state "No Entry." A) Purchased $8,200 of supplies on account.B) Paid weekly salaries, $920. C) Provided services to customers on account, $5,300. D) Paid for supplies purchased in (a) above. E) Placed an order for $6,200 of supplies.

Answer 1

Answer:

Dr Supplies     $8,200

Cr Accounts payable      $8,200

Dr salaries expense    $920

Cr Cash                                 $920

Dr accounts receivable $5,300

Cr sales revenue                        $5,300

Dr accounts payable        $8,200

Cr cash                                                $8,200

Explanation:

The purchase of supplies on account would be debited to supplies account and credited to accounts payable.

The payment of weekly salaries would be debited to salaries expense and credited to cash.

The amount in connection with services provided on account is a credit to sales revenue and a debit to accounts receivable.

Payment for supplies would a credit to cash and a debit to accounts payable.

Placement of an order would have no entry until the goods are received.