Accounting for Purchases and Cash Payments
Recording Purchases and Purchase-Related Transactions
Blue Brothers Company completed the following purchase and purchase-related transactions during May of the current year.
Download the general journal form by clicking on Accounting Forms from the Student Center. Prepare the entries to record the following transactions.
Purchased $700 of merchandise on account from Gilbert Company.
Returned $200 of merchandise to Gilbert Company purchased on May 1.
Purchased office equipment for cash, $1,200.
Paid amount due to Gilbert Company.
Purchased $900 of merchandise on account from Smithfield Brothers, with a 3% discount if paid within 10 days.
Paid freight on merchandise purchased from Smithfield Brothers, $75.
Paid Smithfield Brothers amount due from May 18 purchase.