Rock Castle Construction — Accounting transactions resulting from processing purchasing and cash disbursement transactions
For each of the following transactions, select the proper accounting entry
from the list provided.
a. Inventory was received but not paid for on a purchase order.
Payment terms were 2% 10, Net 30.
1. DR A/C #12100 Inventory Asset
CR A/C #50100 Cost of Goods Sold
2. DR A/C #12100 Inventory Asset
CR A/C #20000 Accounts Payable
3. DR A/C #50100 Cost of Goods Sold
CR A/C #20000 Accounts Payable
4. DR A/C #12100 Inventory Asset
CR A/C #54300 Job Materials
b. A purchase order for the purchase of inventory was prepared and
saved.
1. DR A/C #12100 Inventory Asset
CR A/C #50100 Cost of Goods Sold
2. DR A/C #12100 Inventory Asset
CR A/C #20000 Accounts Payable
3. DR A/C #50100 Cost of Goods Sold
CR A/C #20000 Accounts Payable
4. None of the above (no account ing entry necessary)