18. Paid F. C. Good Rubber Co. bill of July 1, $175.19.
20. Paid our note No. 95, $1,261.40, with $25.23 interest, held by the Brickley Desk Co.
23. Honored B. A. Franklin Press draft at sight for bill of June 22, $262.15. Bank’s statement of account showed charges of $1.25 and 75c respectively for collection of Kistler Stationery Co. draft of November 3, and T. J. Stewart Office Specialties Co. draft of December 13.
Instructions
November 2. Treat all sight drafts when honored as cash transactions.
November 6. Field & Co. adjustment is made in the general journal. Be careful to make entry in proper columns.
November 7. The $10 allowance made us by B. F. Brainard & Co. must be recorded in red in the voucher register close beside the next voucher which will be paid to Brainard—in this case the bill for $802.15 dated October 1. No entry will need to be made in the general journal to secure the proper posting of this item, as the entry in the voucher register is merely a memo to prevent overpayment at time of next settlement. ([See page 40] for discussion of the problem of returns and allowances.)
December 17. Handle the Field & Co. note transaction with care. The discount is a charge to Interest and Discount.
December 23. Run the bank’s collection charges through on a voucher which must be recorded in voucher register and cash book.
XII