Your company uses special journals and an average cost perpetual inventory syste

Question

Your company uses special journals and an average cost perpetual inventory system.

Enter the following transactions into the relevant journal.

Each box must be completed - if there is no value then enter a zero.

All answers are numbers which consist only of the digits 0 to 9. Symbols or punctuation marks should NOT be incorporated in answers.

Nobel Ltd settled their account in full.

The only outstanding invoice was one dated 01/06/16 for $35,200 with terms 3/10 n30.

Paid Otis Inc the balance of their account,

The only outstanding invoice was one dated 15/06/16 for $55,000 with terms 2/15 n30.

   Cash Receipts Journal

Account

Credited

Sales Discounts

    Cash Payments Journal

Account

Debited

Accounts

Payable

Purchase Discounts

Date Transaction 15/06/16    Received a total of $22,000 cash for the sale of inventory 21/06/16

Nobel Ltd settled their account in full.

The only outstanding invoice was one dated 01/06/16 for $35,200 with terms 3/10 n30.

25/06/16

Paid Otis Inc the balance of their account,

The only outstanding invoice was one dated 15/06/16 for $55,000 with terms 2/15 n30.

Drift & Co has a gross profit margin of 50%.

Explanation / Answer

Cash Receipts Journal

Account

Credited

Sales Discounts

    Cash Payments Journal

Account

Debited

Accounts

Payable

Purchase Discounts

Debit Credit Date

Account

Credited

Cash At Bank

Sales Discounts

Sales Revenue Dr COGS GST Net AR GST Net Cr Inventory 15/06/16 22,000 22,000 21/06/16 Nobel Ltd. 35,200 35,200 35,200

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