Record the following transactions in general journal form on the books of the seller (Fuentes Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. If an amount does not require an entry, leave it blank.Fuentes CompanySold merchandise on account to Lowe Company, $1,250; terms 1/10, n/30.Issued a credit memo to Lowe Company for damaged merchandise, $130.Lowe Company paid the account in full within the discount period.(please see images for questionaires) GENERAL JOURNALPAGETRANSACTIONDESCRIPTIONPOST. REF.DEBITCREDIT(a)Sold merchandise to Lowe Company, terms 1/10, n/30.(b)Issued credit memo for return of merchandise.(c)Received payment in full.Lowe Companya. Purchased merchandise on account from Fuentes Company, $1,250; terms 1/10, n/30.b. Received a credit memo from Fuentes Company for damaged merchandise, $130.c. Paid Fuentes Company in full within the discount period. GENERAL JOURNALPAGEPOST.TRANSACTIONDESCRIPTIONDEBITCREDITREF.(a)Purchased merchandise from Fuentes Company, terms 1/10,n/30.(b)Received credit memo for damaged merchandise.(c)Paid invoice in full.

Total Purchase by Lowe Company = $ 1,250 Purchase Return = $ 130 Balance amount due = $1,250 - $…

Answered: Company) and then on the books of the…

College Accounting (Book Only): A Career Approach

13th Edition

ISBN:9781337280570

Author:Scott, Cathy J.

Publisher:Scott, Cathy J.

Chapter10: Cash Receipts And Cash Payments

Section: Chapter Questions

Problem 5E

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Record the following transactions in general journal form on the books of the seller (Fuentes Company) and then on the books of the buyer (Lowe Company) using the periodic inventory system. If an amount does not require an entry, leave it blank.

Fuentes Company

Sold merchandise on account to Lowe Company, $1,250; terms 1/10, n/30.
Issued a credit memo to Lowe Company for damaged merchandise, $130.
Lowe Company paid the account in full within the discount period.
(please see images for questionaires)

GENERAL JOURNAL
PAGE
TRANSACTION
DESCRIPTION
POST. REF.
DEBIT
CREDIT
(a)
Sold merchandise to Lowe Company, terms 1/10, n/30.
(b)
Issued credit memo for return of merchandise.
(c)
Received payment in full.
Lowe Company
a. Purchased merchandise on account from Fuentes Company, $1,250; terms 1/10, n/30.
b. Received a credit memo from Fuentes Company for damaged merchandise, $130.
c. Paid Fuentes Company in full within the discount period.

GENERAL JOURNAL
PAGE
POST.
TRANSACTION
DESCRIPTION
DEBIT
CREDIT
REF.
(a)
Purchased merchandise from Fuentes Company, terms 1/10,
n/30.
(b)
Received credit memo for damaged merchandise.
(c)
Paid invoice in full.

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