Grider Companys chart of accounts includes the following selected accounts. 101 Cash..........401 Sales 112 Accounts Receivable....414 Sales

Question:

Grider Company’s chart of accounts includes the following selected accounts.

101 Cash..........401 Sales

112 Accounts Receivable....414 Sales Discounts

120 Merchandise Inventory....505 Cost of Goods Sold

301 O. Grider, Capital

On April 1 the accounts receivable ledger of Grider Company showed the following balances: Ogden $1,550, Chelsea $1,200, Eggleston Co. $2,900 and Baez $1,800.The April transactions involving the receipt of cash were as follows.

Apr. 1 The owner, O. Grider, invested additional cash in the business $7,200.

4 Received check for payment of account from Baez less 2% cash discount.

5 Received check for $920 in payment of invoice no. 307 from Eggleston Co.

8 Made cash sales of merchandise totaling $7,245.The cost of the merchandise sold was

$4,347.

10 Received check for $600 in payment of invoice no. 309 from Ogden.

11 Received cash refund from a supplier for damaged merchandise $740.

23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co.

29 Received check for payment of account from Chelsea.

Instructions

(a) Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Merchandise Inventory Cr. Foot and crossfoot the journal.

(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...