Question

Philosophic Co. is an office supply store. The company uses a perpetual inventory system.

Record the following transactions in the company’s general journal. To conserve space, you may omit the written explanations which normally should accompany the entries.

July	1	Purchased four Lorac copying machines on account from Lorac Corp. Total
		invoice price was €2,500 per machine (€10,000 total); terms of 2/10, n/30. These
		machines are intended for resale.
July	3	Found one of the Lorac copiers to be defective and returned it to Lorac, thus
		reducing the amount owed.

July      9         Sold one of the Lorac copiers to Morris Realty. The sales price was €3,500, terms   

                        2/10, n/60.

July      17        Paid the amount owned to Lorac Corp.

July      24        Received full payment from Morris.

	General Journal
Date	Account Titles and Explanation	Debit	Credit

Answer 1

Solution :

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