1. CENTURY 21 ACCOUNTING © Thomson/South-Western LESSON 1-2 Journalizing and Posting Purchases and Purchases Returns

2. CENTURY 21 ACCOUNTING © Thomson/South-Western 2 LESSON 1-2 June 1. Purchased video equipment on account from Western Digital Systems, $845.00. Purchase Invoice No. 336. JOURNALIZING PURCHASES ON ACCOUNT 1.Write approval date. 4.Write invoice amount under Accounts Payable column. 3.Record invoice number. 2.Write vendor name. page 13 2 2 3 3 4 44 1 1

3. CENTURY 21 ACCOUNTING © Thomson/South-Western 3 LESSON 1-2 1.Write the date. 5.Write vendor number. 4.Calculate new account balance. 3.Record the credit amount. 2.Write journal page number. POSTING FROM A PURCHASES JOURNAL page 14 4 5 3 1 2

4. CENTURY 21 ACCOUNTING © Thomson/South-Western 4 LESSON 1-2 4.Calculate new account balance. 3.Write column total. 2.Write journal page number. POSTING THE TOTALS OF A PURCHASES JOURNAL page 15 1.Write the date. 5.Write account number. 3 4 1 2 5

5. CENTURY 21 ACCOUNTING © Thomson/South-Western 5 LESSON 1-2 2.Enter accounts to be debited. 3.Record debit memo number. JOURNALIZING PURCHASES RETURNS AND ALLOWANCES page 16 6 1 1 2 2 3 3 4 75 1.Write the date. 4.Draw diagonal line. 5.Write debit amount. 7.Write credit amount. 6.Enter account to be credited.

6. CENTURY 21 ACCOUNTING © Thomson/South-Western Purchase on account DEBIT purchases Credit Accounts Payable 6 LESSON 1-2

7. CENTURY 21 ACCOUNTING © Thomson/South-Western Pay on account with a discount? Debit Accounts Payable Credit BOTH CASH and PURCHASE DISCOUNT 7 LESSON 1-2

8. CENTURY 21 ACCOUNTING © Thomson/South-Western Receive Cash on account with a discount? Debit CASH and SALES DISCOUNT Credit Accounts Receivable 8 LESSON 1-2

9. CENTURY 21 ACCOUNTING © Thomson/South-Western Issue credit for damaged items? Debit SALES RETURNS/ALLOWANCES and SALES TAX PAYABLE Credit ACCOUNTS RECIEVABLE 9 LESSON 1-2

10. CENTURY 21 ACCOUNTING © Thomson/South-Western Someone returned an item? Debit ACCOUNTS PAYABLE Credit PURCHASE RETURNS 10 LESSON 1-2

11. CENTURY 21 ACCOUNTING © Thomson/South-Western 11 LESSON 1-2 To complete: 1-2 WT =WBpage7/Text17 1-2 OYO =WBpage8/Text17 page 17