Montalvo Company uses special journals and a general journal.The following trans
ID: 2433919 • Letter: M
Question
Montalvo Company uses special journals and a general journal.The following transactions occurred during September 2010.
10 Purchased merchandise on account from L.Rincon $600, terms 2/10, n/30.
12 Purchased office equipment onaccount from R. Press $6,500.
25 Purchased merchandise on accountfrom W. Barone $860, terms n/30.
27 Sold merchandise to S.Miller for $700 cash. The cost of the merchandise
sold was $400.
(b) Record the transaction(s) for May that should be journalizedin the cash receipts journal and cash payments journal.
Explanation / Answer
Cash ReceiptJournal CR1 Date Account Ref Cash(Dr.) Sales Discount(Dr.) Accounts Receivable(Cr.) Sales(Cr.) Others(Cr.) May 27 Sales 101 700 700 Totals 700 700 Cash 101 Date Debits Credits Balance May27 700 700 No Cash Payment Journal, all purchased by credit sales.