Velasquez Company has the following selected transactions during March.
|
Mar. 2 |
Purchased equipment costing $9,400 from Chang Company on account. |
|
5 |
Received credit of $410 from Lyden Company for merchandise damaged in shipment to Velasquez. |
|
7 |
Issued credit of $400 to Higley Company for merchandise the customer returned. |
|
The returned merchandise had a cost of $260. |
Velasquez Company uses a one column purchases journal, a sales journal, the columnar cash journals used in the text, and a general journal.
Instructions
(a) Journalize the transactions in the general journal.
(b) In a brief memo to the president of Velasquez Company, explain the postings to the control and subsidiary accounts from each type of journal.