Smith Co purchases of goods on credit from T Rader: $450. What are the correct ledger entries to record these transactions?
Dr purchases 450 Cr trade payables 450
Dr trade payables 450 Cr purchases 450
Dr purchases 450 Cr bank 450
Dr bank 450 Cr purchases 450
Few days later, Smith Co returns of goods purchased on credit last month to T Rader: $700. What are the correct ledger entries to record these transactions?
Dr trade payables 700 Cr purchase returns700
Dr purchase returns700 Cr trade payables 700
Dr trade payables 700 Cr return inwards 700
Dr return inwards 700 Cr trade payables 700
Elliott Co sold goods with a list price of $1,000 to Oli and allowed a trade discount of 10%. What accounting entries should be made by Elliott Co?
Dr Cash at Bank900 Cr Sales900
Dr Sales 900 Cr Cash at Bank 900
Dr Cash at Bank1,000 Cr Sales1,000
Dr Sales 1,000 Cr Cash at Bank 1,000
Dr Cash at Bank1,400 Cr Trade receivables1,400
Dr Cash at Bank1,400 Cr Trade receivables1,330 Cr Revenue70
Dr Cash at Bank1,330 Cr Trade receivables1,330
Dr Cash at Bank1,330 Dr Revenue70 Cr Trade receivables1,400