Selected transactions follow for Discovery Sports Ltd. during the company's first month of business.

Feb. 2 Sold $1,140 of merchandise to Andrew Noren on account, terms n/30.

4 Andrew Noren returned for credit $140 of the merchandise purchased on February 2.

5 Sold $760 of merchandise to Dong Corporation on account, terms 2/10, n/30.

8 Sold $842 of merchandise to Michael Collins for cash.

10 Sold $920 of merchandise to Rafi k Kurji, who paid with a Discovery Sports (company) credit card.

14 Dong Corporation paid its account in full.

17 Andrew Noren purchased an additional $696 of merchandise on account, terms n/30.

22 Sold $1,738 of merchandise to Batstone Corporation, terms 2/10, n/30.

28 Andrew Noren paid $1,000 on account.

Instructions

(a) Prepare the journal entries to record each of the above transactions. Ignore any cost of goods sold entries in this question. Round calculations to the nearest dollar.

(b) Set up T accounts for the Accounts Receivable general ledger (control) account and for the Accounts Receivable subsidiary ledger accounts. Post the journal entries to these accounts.

(c) Prepare a list of customers and the balances of their accounts from the subsidiary ledger. Prove that the total of the subsidiary ledger balances is equal to the control account balance.