Martha Kuerti has started up a new company called Calgary Camera Company (CCC for short) in the Calgary region. CCC specializes in the sale of four types of cameras to customers in "industrial" settings (means they usually buy several items at a time). The four categories of cameras that CCC sells are: point and shoot (PS), digital single-lens reflex (DS), surveillance cameras (SC), and video cameras (VC). Martha wants to keep track of each type of sale in total for each month of operations. She employs three salespersons to manage relations with customers, and also wants to know the total of sales by salesperson each month. CCC's normal terms are 2% 10 days, net 30 days, but a couple of customers have been granted special terms for selected purchases of 3% 12 days, net 36 days. Here are the sales and sales-related transactions for CCC during their first month of operations in November 2016:
2016
Nov. 1 Sold $3,542 (PS), $3,670 (DS), and $5,734 (VC) to West Calgary Tribal Council. Invoice No. 5001. Normal terms. Sold by Fred Jacobs (FJ hereafter).
2 Sold $5,730 (PS), $2,825 (DS), $6,340 (SC), and $1,641 (VC) to KGC Investigations. Invoice No. 5002. Special terms. Sold by Chris Thomas (CT hereafter).
4 Sold $7,420 (PS) and $4,725 (DS) to South Calgary School District. Invoice No. 5003. Special terms. Sold by Grigov Mahlen (GM hereafter).
6 Sold $4,630 (DS) and $3,760 (VC) to Leisure Light Technologies. Invoice No. 5004. Normal terms. Sold by CT.
Nov. 8 KGC Investigations sent an e-mail that there was a minor problem with the lens of several surveillance cameras they purchased on November 2. Martha agreed to a credit allowance of $480 and issued credit memorandum No. 1001 dated this date. Martha decided not to keep track of sales returns by product or by salesperson.
10 Sold $3,742 (PS), $4,896 (DS), and $2,750 (VC) to West Calgary Tribal Council. Invoice No. 5005. Normal terms. Sold by FJ.
12 Sold $4,830 (PS), $3,764 (DS), and $2,467 (VC) to North Calgary College. Invoice No. 5006. Normal terms. Sold by GM.
14 Sold $2,418 (PS), $3,465 (DS), $3,480 (SC), and $1,837 (VC) to South Calgary School District. Invoice No. 5007. Special terms. Sold by GM.
16 Sold $2,830 (PS), $3,560 (DS), and $4,706 (VC) to Leisure Light Technologies. Invoice No. 5008. Normal terms. Sold by CT.
18 Sold $4,626 (PS), $2,416 (SC) and $1,825 (VC) to KGC Investigations. Invoice No. 5009. Normal terms. Sold by CT.
21 The Program Director for North Calgary College explained that there was a flaw in the GPS devices in a camera they purchased on November 12. The camera is otherwise useable, so an adjustment in price of $165 was agreed to. Issued credit memorandum No. 1002 this date.
23 Sold $2,840 (PS), $3,582 (DS), and $1,694 (VC) to SKH Management Company. Invoice No. 5010. Special terms. Sold by FJ.
25 Sold $4,608 (PS) and $6,448 (DS) to South Calgary School District. Invoice No. 5011. Special terms. Sold by GM.
26 Sold $4,006 (PS) and $4,376 (DS) to KGC Investigations. Invoice No. 5012. Special terms. Sold by CT.
29 Sold $7,836 (PS), $3,570 (DS), and $2,330 (VC) to West Calgary Tribal Council. Invoice No. 5013. Normal terms. Sold by FJ.
30 Sold $2,418 (PS), $4,660 (DS), $5,002 (SC), and $840 (VC) to Leisure Light Technologies. Invoice No. 5014. Normal terms. Sold by CT.
Required:
a. Enter the above transactions in both a 5-column sales journal and the general journal.
b. Record all transactions to the customers' accounts in the accounts receivable subsidiary ledger.
c. Ensure that the sales journal is completed (including details of salespersons) and cross-added for the month.
d. Post all transactions to the relevant general ledger accounts at month-end. See account numbers below.
e. Prepare a schedule of accounts receivable as of November 30. Please note-if you are also required to complete problem 6-C4 (see following), then you should only prepare this schedule once, after all cash receipts have been recorded.
Here are the general ledger account numbers used by CCC:
Accounts Receivable ........................ 1500
Sales Returns and Allowances ............. 4900
Sales Discounts .............................. 4950
PS Sales ...................................... 4000
DS Sales ..................................... 4100
SC Sales ..................................... 4200
VC Sales ..................................... 4300