General Journal #2

Date Account Title/Explanation P.R Debit Credit

Aug-01 Purchases P30,000
Cash P30,000
Cash purchased of Merchandise

2 Purchases 30,000
Accounts Payable 30,000
Merchandise Purchased on Account

3 Cash 1,300
Purchased Returns and Allowances 1,300
Cash refund for merchandise returns

4 Accounts Payable 1,500

Purchase Returns and Allowances 1,500
Offsetting of account

7 Freight In 700
Cash 700
Cash payment for freight cost

10 Utilities Expense 4,000

Cash 4,000
Cash payments of utilities

15 Account Payable 28,500

Cash 27,930
Purchase Discount 570
Full payment of Accounts

17 Purchases 40,000
Cash 10,000
Notes Payable 30,000
Merchandise bought with partial payments

Sales Discount
30,000x0.02=900
30,000-1,500=28,500-900=27,600