question archive Union Co has the following transactions: i
Union Co has the following transactions: i
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Union Co has the following transactions: i. Payment of [290 to a regular supplier for a cash purchase ii. Payment of $550 from a new customer for a credit sale in the previous month What are the correct ledger entries to record these transactions? Dr Receivables $550 Cr Cash $260 Cr Purchases L290 O Dr Cash $550 Dr Purchases $290 Cr Receivables $550 Cr Cash $290 O Dr Sales $550 Dr Cash $290 Cr Cash $550 Cr Purchases $290 O Dr Cash $260 Dr Purchases $290 Cr Receivables $550
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| SN | Particulars | Debit | Credit |
| i | Purchases | 290.00 | |
| Cash | 290.00 | ||
| To record the payment of cash purchases | |||
| ii | Cash | 550.00 | |
| Accounts receivables | 550 | ||
| To record the collection of accounts receivable | |||
Step-by-step explanation
| SN | Particulars | Debit | Credit |
| i | Purchases | 290.00 | |
| Cash | 290.00 | ||
| To record the payment of cash purchases | |||
| ii | Cash | 550.00 | |
| Accounts receivables | 550 | ||
| To record the collection of accounts receivable | |||
| or | |||
| Cash | 550 | ||
| Purchases | 290 | ||
| Accounts receivables | 550 | ||
| Cash | 290 | ||
| Alternatively, use compounded entry | |||
| Cash | 260 | ||
| Purchases | 290 | ||
| Accounts receivables | 550 | ||
