Duncan Industries completed these transactions during July 2014. The terms of all credit sides tire 2/10, n/30
July 1 Purchased merchandise on credit from Beech Company, invoice dated June 30, terms 2/10, n/30, $14,500.
3 Issued cheque #300 to The Weekly journal for advertising expense, $1,075.
5 Sold merchandise on credit to Karen Harden, invoice #918, $35,000. Cost, $19,250.
6 Sold merchandise on credit to Paul Kane, invoice #919, $16,000. Cost, $8,800.
7 Purchased store supplies on credit from Blackwater Inc., $2,300. Invoice dated July 7, terms n/10 EOM.
8 Received a $300 credit memorandum from Blackwater Inc. for store supplies received on July 7 and returned for credit.
9 Purchased store equipment on credit from Poppe's Supply, invoice dated July 8, terms n/10 EOM, $72,500.
10 Issued cheque #301 to Beech Company in payment of its June 30 invoice.
13 Sold merchandise on credit to Kelly Grody, invoice #920, $1 7,200. Cost, $9,460
14 Sold merchandise on credit to Karen Harden, invoice #921, $8,200. Cost, $4,500
15 Received payment from Karen Harden for the July 5 sale.
15 Issued cheque #302, payable to Payroll, in payment of the sales salaries for the first half of the month, $60,400. For simplicity, we assume one cheque.
15 Cash sales for the first half of the month were $242,740. Cost, $1 33,500, Cash sales are usually recorded daily from the cash register readings. However, they are recorded only once in this problem to reduce the repetitive transactions.
Required
1. Set up Accounts Receivable Sub ledger accounts for Kelly Grody, Karen Harden, and Paul Kane.
2. Set up Accounts Payable Sub ledger accounts for Beech Company, Black water Inc., Poppe's Supply, and Sprague Company.
3. Journalize the transactions of Duncan Industries into the appropriate special journal, posting to the sub ledgers where required. Use page 3 for all journals.