Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transac

Question

Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 2019: Bowden Company DATE TRANSACTIONS 2019 Jan. 8 Issued Check 2101 for $2,352 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 2018, less cash discount of $48 terms 2/10, n/30. merchandise totaling $200 that was returned; the goods were 10 Purchased merchandise for $1,700 from Song, Inc., Invoice 1920; 15 Received Credit Memorandum 320 from Song, Inc., for damaged purchased on Invoice 1920, dated January 10. 19 Paid amount due to Song, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130 30 Purchased merchandise for $3,600 from Song, Inc., Invoice 1950; terms 2/10, n/30. GENERAL LEDGER ACCOUNTS-BOWDEN COMPANY 201 Accounts Payable, $2,400 Cr ACCOUNTS PAYABLE LEDGER ACCOUNT-BOWDEN COMPANY Song, Inc., $2,400 Song, Inc. DATE TRANSACTIONS 2019 Jan. 8 Received payment of $2,352 on account from Bowden Company in payment of Invoice 1885 dated December 30, 2018, less cash discount of $48 1920, terms 2/10, n/30. merchandise totaling $200 that was returned; the goods were 10 Sold merchandise for $1,700 on account to Bowden Company, Invoice 15 Issued Credit Memorandum 320 to Bowden Company for damaged purchased on Invoice 1920, dated January 10 10, less the return of January 15 and less the cash discount. 2/10, n/30. 19 Received payment from Bowden Company for Invoice 1920 of January 30 Sold merchandise for $3,600 to Bowden Company, Invoice 1950; terms GENERAL LEDGER ACCOUNTS-SONG, INC 111 Accounts Receivable, $2,400 Dr ACCOUNTS RECEIVABLE LEDGER ACCOUNT-SONG, INC Bowden Company, $2,400

Explanation / Answer

Bowden Company(Buyer) Date Particulars Debit Credit 08.01.2019 Song Inc 2400 To cash 2352 To Discount 48 10.01.2019 Purchase 1700 To Song Inc 1700 15.01.2019 Song Inc 200 To Purchase Return 200 19.01.2019 Song Inc 1500 To Cash 1470 To Cash Discount 30 (1700-200)*2% 30.01.2019 Purchase 3600 To Song Inc 3600 Song Inc(Seller) Date Particulars Debit Credit 08.01.2019 Cash 2352 Discount 48 To Bowden Company 2400 10.01.2019 Bowden Company 1700 To Sales 1700 15.01.2019 Sales Return 200 To Bowden Company 200 19.01.2019 Cash 1470 Discount 30 To Bowden Company 1500 (1700-200)*2% 30.01.2019 Bowden Company 3600 To Sales 3600 General Ledger - Bowden Company Accounts payable Subsidiary Ledger - Bowden Company Accounts Payable Account No 201 Song, Inc Terms: 2/10, n/30 Date Debit Credit Balance Date Debit Credit Balance Jan 1,2019 2400 Cr Jan 1,2019 2400 Cr Jan 8,2019 2400 0 Jan 8,2019 2400 0 Jan 10,2019 1700 1700 Jan 10,2019 1700 1700 Jan 15,2019 200 1500 Jan 15,2019 200 1500 Jan 19,2019 1500 0 Jan 19,2019 1500 0 Jan 30,2019 3600 3600 Cr Jan 30,2019 3600 3600 Cr General Ledger - Song Inc Accounts receivable Subsidiary Ledger - Song Inc Accounts Receivable Account No 111 Bowden Company Terms Date Debit Credit Balance Date Debit Credit Balance Jan 1,2019 2400 Dr Jan 1,2019 2400 Dr Jan 8,2019 2400 0 Jan 8,2019 2400 0 Jan 10,2019 1700 1700 Jan 10,2019 1700 1700 Jan 15,2019 200 1500 Jan 15,2019 200 1500 Jan 19,2019 1500 0 Jan 19,2019 1500 0 Jan 30,2019 3600 3600 Dr Jan 30,2019 3600 3600 Dr Accounts payable for Song Inc 3600 Accounts Receivable for bowden Company 3600

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