To assist you in recording these transactions for the month of January, 202Y (new year), at the end of this problem is the schedule of accounts receivable as of December 31 of the previous year (202X) and an updated chart of accounts with the current balance listed for each account. (202Y refers to the new year.)

Assignment

1. Journalize the transactions. Use a perpetual inventory system.
2. Record in the accounts receivable subsidiary ledger and post to the general ledger as appropriate. A partial subsidiary ledger is included in the working papers that are available in MyLab Accounting.
The following accounts have been added to the chart of accounts: Merchandise Inventory #1021, Sales #4010, Sales Returns and Allowances #4020, Sales Discounts #4030, and COGS #5000.
3. Prepare a schedule of accounts receivable as of January 31, 202Y.
The January transactions are as follows:

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Jan. 1 Purchased $12,000 worth of inventory for cash. 5 Sold $780 worth of merchandise to Viral Video on credit, sales invoice no. 5000; terms 3/10, n/30. The cost of the merchandise was $510. 10 Sold $3,600 worth of merchandise on account to Dr. Michael Turiono, sales invoice no. 5001; terms 3/10, n/30. The cost of the merchandise was $2,340. 11 Received $2,800 from Vital Tax Services, toward payment of its balance; no discount allowed. 12 Collected $2,800 cash sales. The cost of the merchandise was $1,775. 19 Sold $4,500 worth of merchandise on account to Viral Video, sales invoice no. 5002; terms 3/10, n/30. The cost of the merchandise was $2,900. 20 Collected balance in full, less discount, from Dr. Michael Turiono, invoice no. 5001. 29 Issued credit memorandum to Value Pac Inc. for $460 worth of merchandise returned, invoice no. 5000. The cost of the merchandise was $300. 29 Collected full payment, less discount, from Viral Video, invoice no. 5002.