Exercise J8 Eaton Company uses the columnar cash journals il

Exercise J-8 Eaton Company uses the columnar cash journals illustrated in the textbook. In April, for the following selected cash transactions occurred Indicate the journal that should be used in recording each transaction. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. Made a cash refund to a customer for the return of damaged goods. Received collection from customer within the 3% discount period Purchased merchandise for cash. Paid a creditor within the 3% discount period. Received collection from customer after the 3% discount period had expired. Paid freight on merchandise purchased Paid cash for office equipment. Received cash refund from supplier for merchandise returned Paid cash dividend to stockholders. Made cash sales.

Solution

1. Made a cash refund to a customer for the return of damaged goods.

Debit - Sales Returns and Allowances

Credit - Cash

2. Received collection from customer within the 3% discount period.

Debit - Cash

Debit - Discount

Credit - Accounts Receivable

3. Purchased merchandise for cash.

Debit - Merchandise Inventory or Purchases or Inventory (Based on the name on the drop down menu)

Credit - Cash

4. Paid a creditor within the 3% discount period.

Debit - Accounts Payable

Credit - Cash

Credit - Discount Received

5. Received collection from customer after the 3% discount period had expired.

Debit - Cash

Credit - Accounts Receivable

6. Paid freight on merchandise purchased.

Debit - Freight

Credit - Cash

7. Paid cash for office equipment.

Debit - Office Equipment

Credit - Cash

8. Received cash refund from supplier for merchandise returned.

Debit - Cash

Credit - Inventory / Purchase returns and allowances

9. Paid cash dividend to stockholders.

Debit- Dividend

Credit - Cash

10. Made cash sales.

Debit - Cash

Credit - Sales