Learning Objectives

1. Record purchases of merchandise on credit in a three-column purchases journal.
2. Post from the three-column purchases journal to the general ledger accounts.
3. Post credit purchases from the purchases journal to the accounts payable subsidiary ledger.
4. Record purchases, returns, and allowances in the general journal and post them to the accounts payable subsidiary ledger.
5. Prepare a schedule of accounts payable.
6. Compute the net delivered cost of purchases.
7. Demonstrate a knowledge of the procedure for effective internal control of purchases.
8. Define the accounting terms new to this chapter.