Using your solution to 11-1B, prove the accuracy of the accounts receivable subsidiary ledger by preparing a schedule of accounts receivable as of July 31.

Problem 11-1B

Sales journal and accounts receivable subsidiary ledger Acorn Industries completes the following transactions during July, its first month of operations (the terms of all its credit sales are 2/10, n/30). A tax rate of 10% applies to all sales.
July 

5 Sold merchandise on credit to Kim Nettle, Invoice No. 918, for \($19,200.\)
6 Sold merchandise on credit to Ruth Blake, Invoice No. 919, for \($7,500.\)
13 Sold merchandise on credit to Ashton Moore, Invoice No. 920, for \($8,550.\)
14 Sold merchandise on credit to Kim Nettle, Invoice No. 921, for \($5,100.\)
29 Sold merchandise on credit to Ruth Blake, Invoice No. 922, for \($17,500.\)
30 Sold merchandise on credit to Ashton Moore, Invoice No. 923, for \($16,820.\)

Required
I. Prepare a sales journal like that in Exhibit 11.6. Number the sales journal as page 3.
2. Open the following general ledger accounts: Accounts Receivable, Sales Tax Payable, and Sales. Also open accounts receivable subsidiary ledger accounts for Kim Nettle, Ashton Moore, and Ruth Blake.
Post the transactions to the subsidiary ledger accounts. Prepare the month-end postings to the general ledger accounts.

Transcribed Image Text:

Sales Journal Date Page 3 Exhibit 11.6 Account Invoice Accounts Sales Tax Sales Debited Number PR Receivable Dr. Payable Cr. Cr. Sales Journal Example Nov. 3 27 358125122 Bradford Inc. 145 2,544 144 2,400 Smith Inc. 146 1,113 63 1,050 Cluff Inc. 147 265 15 250 Dobson Inc. 148 583. 33. 550 Taylor Inc. 149 1,431 81 1,350 Burns Inc. 150 636 36 600 17 Smith Inc. 151 1,484 84 1,400 Dobson Inc. 152 1,272 Taylor Inc. 153 318 NO 72 1,200 18 300