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Question - Complete the accounts payable process, including analyzing purchase transactions, posting to an accounts payable subsidiary ledger, processing invoices for payment, and preparing a schedule for accounts payable.
1. Skip works in the Accounts Payable department at Furniture Direct, a wholesale furniture supplier. Furniture Direct is a very large company, and accordingly is a customer of dozens of other businesses. One of these is Cubicle Deluxe, from whom Furniture Direct buys its own furniture as well as office supplies. In January, Furniture Direct decides to replace all of the desks in its customer service department at a cost of $125,000. Skip is now ready to analyze this transaction.
As you go through the accounts payable process, pay close attention to detail and double-check your work to make sure it is accurate.
a. What accounts would be debited and credited in this transaction? By how much? What information would be entered into the purchases journal? Fill in the journal below.
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