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Question
Williams Company began business on May 1. They use the periodic inventory method. The following transactions involving purchases and cash disbursements occurred during the first week of May:
| May 2 | Purchased $25,000 of merchandise inventory on credit from the Sioux City Company, terms 2/10, n/30. Invoice dated May 1. |
| May 3 | Purchased $12,000 of merchandise inventory on credit from the Wichita Company, terms 2/10, n/30. Invoice dated May 2. |
| May 3 | Purchased $3,000 of office supplies for cash from Bettendorf Co. Check no. 1267. |
| May 4 | Purchased $36,000 of office equipment on credit from Office Outfitters, terms n/60. Invoice dated May 3. |
| May 6 | Paid the amount due for the merchandise purchased from Sioux City Company. Check no. 1268. |
| May 6 | Purchased $14,500 of merchandise inventory for cash from the Davenport Co. Check no. 1269. |
a. Use the purchases journal and the cash disbursements journal to record these transactions
b. Prepare a schedule of accounts payable as of May 7. There was no accounts payable on May 1.
| Purchases Journal | ||||||||
| Date | Account | Date of Invoice | Terms | PR | Accounts Payable Cr. | Purchases Dr. | Office Supplies Dr. | Other Accounts Dr. |
| Cash Disbursements Journal | ||||||||
| Date | Ck. No. | Payee | Account Debited | PR | Cash Cr. | Purchase Discount Cr. | Other Accounts Dr. | Accounts Payable Dr. |
Answer
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