Purchased merchandise for cash.

Debit

Purchases

Credit

Cash

Purchased merchandise from Accounts Payable-Bob Bennet

Debit Purchases

Credit

Acct. Pay. &

Bob Bennet

Paid cash on account to Bob Bennett; no discount

Debit

Acct. Pay. &

Bob Bennett

Credit

Cash

Paid cash on account to Bob Bennett less purchase discount

Debit

Acct. Pay. and Bob Bennett

Credit

Cash

Purchase Discount

Returned merchandise on account to Bob Bennett

Debit

Acct. Pay. and Bob Bennett

Credit

Purchases Returns & Allowances

Recorded cash and credit card sales plus sales tax.

Debit

Cash

Credit

Sales,

Sales tax payable

Sold merchandise on account to Ann Adams plus tax

Debit

Acct. Rec. &

Ann Adams

Credit

Sales

Sales Tax Payable

Received cash on account from Accounts Receivable-Gina

Gates; no discount

Debit

Cash

Credit

Acct. Rec. & Gina Gates

Received cash from Ann Adams less sales discount

Debit Cash

Sales Discount

Credit

Acct. Rec. and Ann Adams

Granted credit to Ann Adams for merchandise returned plus tax

Debit

Sales Ret. & Allow.

Sales Tax Payable

Credit

Credit

Acct. Rec. and Ann Adams

Paid cash for supplies.

Debit

Supplies

Credit

Cash

Bought supplies on account from Connie Conley

Debit Supplies

Credit

Acct. Pay. &

Connie Conley

Paid cash to Sam Smith, owner, personal use.

Debit

Sam Smith, Drawing

Credit

Cash

Sam Smith, owner, withdrew merchandise for personal use.

Debit

Sam Smith, Drawing

Credit

Purchases

Paid cash for sales tax owed.

Debit

Sales Tax PayableCredit

Cash

Paid cash for the insurance premium.

Debit

Prepaid Insurance

Credit

Cash

Received cash from Sam Smith, owner, as an investment.

Debit

Cash

Credit

Sam Smith, Capital

Paid cash to establish a petty cash fund.

Debit

Petty Cash

Credit

Cash

Paid cash to replenish petty cash: supplies, advertising expense,

cash is short.

Debit

Supplies

Advertising Exp.

Cash Short and Over

Credit

Cash

Paid cash for rent.

Debit

Rent ExpenseCredit

Cash

Record the adjusting entry for Supplies

Debit

Supplies Expense

Credit

Supplies

Recorded adjusting entry for Prepaid Insurance

Debit

Insurance Exp.

Credit

Prepaid Insurance

Close the sales account.

Debit

Sales

Credit

Income Summary

Close the rent expense account.

Debit

Income Summary

Credit

Rent Expense

Close income summary (net income balance).

Debit

Income Summary

Credit

Owner, Capital

Close income summary (net loss balance).

Debit

Owner, Capital

Credit

Income Summary

Close the drawing account.

Debit

Owner, Capital

Credit

Owner, Drawing