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Journal Entries

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Journalize the following entries on the books of Wells Co. for November 1, December 1, December 31, and March 1.

Nov. 1 Wells Co. purchased merchandise for $30,000 on account from Burke Co., terms n/30.
Dec. 1 Wells Co. issued a 90-day, 5% note for $30,000 on account.

31 Accrued interest on the note.

Mar. 1 Wells Co. paid the amount due.

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Solution Summary

The solution explains the journal entries to be made for the given transactions.

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The journal entries would be

Nov 1 Merchandise Inventory Dr................ 30,000
Accounts Payable Cr ............................30,000

The inventory has been purchased on credit.

Dec 1 Accounts Payable Dr......................30,000
...

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