Question

Presented below are transactions related to Novak, Inc.

May 10		Purchased goods billed at $15,700 subject to cash discount terms of 2/10, n/60.
11		Purchased goods billed at $10,800 subject to terms of 1/15, n/30.
19		Paid invoice of May 10.
24		Purchased goods billed at $12,100 subject to cash discount terms of 2/10, n/30.

Prepare general journal entries for the transactions above under the assumption that purchases are to be recorded at net amounts after cash discounts and that discounts lost are to be treated as financial expense. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
May 10May 11May 19May 24
May 10May 11May 19May 24
May 10May 11May 19May 24
May 10May 11May 19May 24

eTextbook and Media

List of Accounts

  

  

Assuming no purchase or payment transactions other than those given above, prepare the adjusting entry required on May 31 if financial statements are to be prepared as of that date. (If no entry is required, select "No entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 6,578. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Date	Account Titles and Explanation	Debit	Credit
May 31

Answer 1