PE 5-4B Accounts payable subsidiary ledger

The debits and credits from two transactions are presented in the following supplier’s
(creditor’s) account:

NAME Daisy Inc.
ADDRESS 5000 Grand Ave.
                                    Post.
  Date        Item            Ref.                  Debit               Credit               Balance
 Feb. 1     Balance                                                                                     92
       11     Invoice 122  CP71                    79                                              13
       20     Invoice 139    P55                                            57                      70

Describe each transaction and the source of each posting.

Answer:
Feb. 11. Paid $79 to Daisy Inc. on account (Invoice No. 122). Amount posted from page 71 of the cash                    payments journal.
        20. Made purchases of $57 on account from Daisy Inc. (Invoice No. 139). Amount posted from page               55 of the purchases journal.