Question

Bowden Company (buyer) and Song, Inc. (seller), engaged in the following transactions during January 20X1:

Bowden Company

DATE		TRANSACTIONS
20X1
Jan.	8	Issued Check 2101 for $2,548 on account to Song, Inc., in payment of Invoice 1885 dated December 30, 20X0, less cash discount of $52.
	10	Purchased merchandise for $1,800 from Song, Inc., Invoice 1920; terms 2/10, n/30.
	15	Received Credit Memorandum 320 from Song, Inc., for damaged merchandise totaling $100 that was returned; the goods were 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 $3,800 from Song, Inc., Invoice 1950; terms 2/10, n/30.

  

GENERAL LEDGER ACCOUNTS—BOWDEN COMPANY
201 Accounts Payable, $2,600 Cr.

  

ACCOUNTS PAYABLE LEDGER ACCOUNT—BOWDEN COMPANY
Song, Inc., $2,600

  

Song, Inc.

  

DATE		TRANSACTIONS
20X1
Jan.	8	Received payment of $2,548 on account from Bowden Company in payment of Invoice 1885 dated December 30, 20X0, less cash discount of $52.
	10	Sold merchandise for $1,800 on account to Bowden Company, Invoice 1920, terms 2/10, n/30.
	15	Issued Credit Memorandum 320 to Bowden Company for damaged merchandise totaling $100 that was returned; the goods were purchased on Invoice 1920, dated January 10.
	19	Received payment from Bowden Company for Invoice 1920 of January 10, less the return of January 15 and less the cash discount.
	30	Sold merchandise for $3,800 to Bowden Company, Invoice 1950; terms 2/10, n/30.

  

GENERAL LEDGER ACCOUNTS—SONG, INC.
111 Accounts Receivable, $2,600 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SONG, INC.
Bowden Company, $2,600

Required:

1a. Journalize the transactions above in a general journal for Bowden Company.

1b. Journalize the transactions above in a general journal for Song, Inc.

2. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bowden Company.

3. Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Song, Inc.

Analyze:
What is the balance of the accounts payable for Song, Inc., in the Bowden Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bowden Company in the Song, Inc., accounts receivable subsidiary ledger?

Answer 1

Answer- 1a

Answer- 1b

Note : Instead of Sales & Purchase we can also use Sale Return and Purchase Return accounts.

Answer-2

Answer-3