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QUESTION FOUR: (18 POINTS) Bird Company began business on May 1. They use the perpetual 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 Canary Company, terms 2/10, n/30. Invoice dated May 1. May 3 Sold $ 20,000 of merchandise on credit. May 4 Purchased $18,000 of office equipment and $ 18,000 Office Supplies on credit terms n/30 May 6 Returned merchandise to a supplier for cash $ 10,000. May 7 Purchased $3,000 of office supplies for cash from Eagle Company. Check no. 1267. May 10 Paid the amount due for the merchandise purchased from Canary Company on May 2 above. Check no. 1268. Required: Use the purchases journal and the cash disbursements (payments) journal to record these transactions. Purchases Journal Date Account PR Term Date of Account Inventory Office Other invoice payable Cr. Dr. Supplies Account Dr. Dr. Totals

          QUESTION FOUR:
(18 POINTS)
Bird Company began business on May 1. They use the perpetual 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 Canary Company,
terms 2/10, n/30. Invoice dated May 1.
May 3 Sold $ 20,000 of merchandise on credit.
May 4 Purchased $18,000 of office equipment and $ 18,000 Office Supplies on credit
terms n/30
May 6 Returned merchandise to a supplier for cash $ 10,000.
May 7 Purchased $3,000 of office supplies for cash from Eagle Company. Check no. 1267.
May 10 Paid the amount due for the merchandise purchased from Canary Company on May
2 above. Check no. 1268.
Required: Use the purchases journal and the cash disbursements (payments) journal to
record these transactions.
Purchases Journal
Date Account PR Term Date of Account Inventory Office Other
invoice payable Cr. Dr. Supplies Account
Dr. Dr.
Totals

QUESTION FOUR:
(18 POINTS)
Bird Company began business on May 1. They use the perpetual 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 Canary Company,
terms 2/10, n/30. Invoice dated May 1.
May 3 Sold 20,000 of merchandise on credit.
May 4 Purchased 18,000 of office equipment and 18,000 Office Supplies on credit
terms n/30
May 6 Returned merchandise to a supplier for cash 10,000.
May 7 Purchased3,000 of office supplies for cash from Eagle Company. Check no. 1267.
May 10 Paid the amount due for the merchandise purchased from Canary Company on May
2 above. Check no. 1268.
Required: Use the purchases journal and the cash disbursements (payments) journal to
record these transactions.
Purchases Journal
Date Account PR Term Date of Account Inventory Office Other
invoice payable Cr. Dr. Supplies Account
Dr. Dr.
Totals

Added by Jeffrey M.

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