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PROBLEM 8.4B (continued)
ACCOUNT Accounts Payable ACCOUNT NO.
2013
ACCOUNT Purchases ACCOUNT NO.
2013
ACCOUNT Freight In ACCOUNT NO.
ACCOUNT Purchases Returns and Allowances ACCOUNT NO.
2013
GENERAL LEDGER
203
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
502
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
503
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
PROBLEM 8.4B (continued)
Purchases $11,780
PROBLEM 8.4B (continued)
NAME Business Forms, Inc. TERMS
2013
NAME Gifts and Holiday Cards TERMS
2013
Feb. 1 Balance ✔400000
NAM
E
TERMS
NAME Specialty Business Cards TERMS
2013
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
n/30
DATE DESCRIPTION POST.REF. DEBIT CREDIT BALANCE
2/10, n/30
DATE DESCRIPTION POST.REF. DEBIT CREDIT BALANCE
2/10
,
n/30
DATE DESCRIPTION POST.REF. DEBIT CREDIT BALANCE
Packin
g
and Mail Su
pp
l
y
Cente
r
1/10, n/45
DATE DESCRIPTION POST.REF. DEBIT CREDIT BALANCE
PROBLEM 8.4B (continued)
1004000
666000
Simpson’s Card and Novelty Shop
Schedule of Accounts Payable
February 28, 2013
Business Forms, Inc.
Gifts and Holiday Cards
CRITICAL THINKING PROBLEM 8.1
PAG
E
PURCHASED FROM
INVOICE
NUMBER
INVOICE
DATE TERMS
POST.
REF.
2013
Jan. 3 Fashion Expo 101 12/26 n/30 ✔462000 450 000 12000
5 Tru Totes & Co. 223 12/28 2/10, n/30 ✔356900 348 000 8900
PURCHASES JOURNAL 6
DATE
ACCOUNTS
PAYABLE
CREDIT
PURCHASES
DEBIT
FREIGHT IN
DEBIT
CRITICAL THINKING PROBLEM 8.1 (continued)
PAGE
SALES
SLIP
NO.
CUSTOMER'S
NAME
POST.
REF.
1 2013 1
2 Jan. 4 101 Vivian Cho ✔64800 4800 60000 2
3 5 102 Dina Bates ✔56700 4200 52500 3
15 15
SALES JOURNAL 1
DATE
ACCOUNTS
RECEIVABLE
DEBIT
SALES TAX
PAYABLE
CREDIT SALES CREDIT
CRITICAL THINKING PROBLEM 8.1 (continued)
NAME City Walks TERMS
NAME Comfy Casuals TERMS
2013
NAME Extreme Fashions TERMS
2013
NAME Fashion Expo TERMS
2013
DEBIT CREDIT BALANCE
2/10, n/30
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
POST.
REF.
CREDIT
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
n/30
DATE DESCRIPTION CREDIT BALANCE
DATE
DATE DESCRIPTION
n/60
POST.
REF. DEBIT
BALANCEDESCRIPTION
POST.
REF. DEBIT
NAME Professional Wears TERMS
2013
NAME Silky Legs Express TERMS
NAME Special Occasions Dress Shop TERMS
NAME Tru Totes & Co. TERMS
2013
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
ACCOUNTS PAYABLE SUBSIDIARY LEDGER
2/10, n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
CRITICAL THINKING PROBLEM 8.1 (continued)
NAME Julia Adams TERMS
NAME Andrea Aguilar TERMS
NAME Dina Bates TERMS
NAME Vivian Cho TERMS
2013
BALANCE
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
DATE DESCRIPTION
DATE DESCRIPTION
POST.
REF. DEBIT
POST.
REF. DEBIT
CREDIT
CREDIT
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
n/30
DATE DESCRIPTION
BALANCE
n/30
n/30
POST.
REF. DEBIT CREDIT BALANCE
CRITICAL THINKING PROBLEM 8.1 (continued)
NAME Aileen De Revere TERMS
NAME Toni Garcia TERMS
2013
NAME Tracy Mai TERMS
2013
NAME Linda Martin TERMS
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
n/30
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT BALANCE
CRITICAL THINKING PROBLEM 8.1 (continued)
NAME Elaine Patterson TERMS
2013
NAME Sasha Ramirez TERMS
2013
NAME Cheryl Scott TERMS
2013
CREDIT BALANCEDATE DESCRIPTION POST. REF. DEBIT
n/30
DESCRIPTION BALANCE
n/30
CREDIT BALANCEDATE DESCRIPTION POST. REF. DEBIT
POST. REF.
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
n/30
DEBIT CREDITDATE
CRITICAL THINKING PROBLEM 8.1 (continued)
ACCOUNT Accounts Receivable ACCOUNT NO.
2013
ACCOUNT Accounts Payable ACCOUNT NO.
2013
ACCOUNT Sales Tax Payable ACCOUNT NO.
2013
DATE
CREDIT
POST.
REF. CREDIT DEBIT
DESCRIPTION
DEBIT
DATE
CREDIT
DEBIT
CREDIT
POST.
REF.
231
BALANCE
DESCRIPTION
POST.
REF.
BALANCE
205
CREDIT
BALANCE
GENERAL LEDGER
111
DATE DESCRIPTION
CREDIT
DEBIT
DEBIT
DEBIT
CRITICAL THINKING PROBLEM 8.1 (continued)
ACCOUNT Sales ACCOUNT NO.
2013
ACCOUNT Purchases ACCOUNT NO.
2013
ACCOUNT Freight In ACCOUNT NO.
2013
502
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
501
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
GENERAL LEDGER
401
DATE DESCRIPTION
POST.
REF. DEBIT CREDIT
BALANCE
DEBIT CREDIT
CRITICAL THINKING PROBLEM 8.1 (continued)
320000
396000
307500
Fashion Standards
Schedule of Accounts Payable
January 31, 2013
City Walks
Comfy Casuals
Extreme Fashions
CRITICAL THINKING PROBLEM 8.1 (continued)
Analyze: Net delivered cost of purchases:
CRITICAL THINKING PROBLEM 8.2
1. To determine whether Passions Linen Shop was billed in error:
a Review Passions Linen Shop’s purchase order file for duplicate orders to Sensuous Linen
Company. If two orders were placed for the same merchandise, check the receiving reports
2. To prevent this situation from occurring again:
a Prenumber all purchase order forms and periodically check to be sure that all forms can be
accounted for.
b Require all purchase orders to have proper authorization before they are issued. Alexander
SOLUTIONS TO BUSINESS CONNECTIONS
Managerial Focus:
2. Allows a business to buy on credit, using resources more effectively.
4. Protect against fraud and excessive investment in merchandise.
6. Creates a storage problem, risks obsolescence of the merchandise, and ties up funds.
Ethical Dilemma:
Anait’s actions are not ethical. If she cannot get a raise from this company, she should find a
1. 2010: 66.1%. 2009: 66.3%
2. Answers will vary. Students may suggest price changes on merchandise from suppliers,
discounts, or shipping costs variances.
Analyze Online:
Answers will vary depending on the year.
SOLUTIONS TO PRACTICE TEST
Part A True-False
Part B Exercises
1. An expense.
