At the end of May, the sales journal of Mountain View appears as follows. Sales Journal Date
Question:
At the end of May, the sales journal of Mountain View appears as follows.
Sales Journal Date Account Debited Invoice Number PR Cost of Goods Sold Dr.
Inventory Cr.
Accounts Receivable Dr.
Sales Cr.
May 6 10 17 25 31 Aaron Reckers Sara Reed Anna Page Sara Reed Totals 190 191 192 193 3,880 2,940 1,850 1,340 10,010 3,120 2,325 1,480 1,075 8,000 Mountain View also recorded the return of defective merchandise with the following entry.
May 20 Sales Returns and Allowances . . . . . . . . . . . . . . . . . . 350 Accounts Receivable—Anna Page . . . . . . . . . . . 350 Customer returned (worthless) merchandise.
Required 1 Open an accounts receivable subsidiary ledger that has a T-account for each customer listed in the sales journal. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer’s account.
2 Open a general ledger that has T-accounts for Accounts Receivable, Inventory, Sales, Sales Returns and Allowances, and Cost of Goods Sold. Post the sales journal and any portion of the general journal entry that affects these accounts.
3 Prepare a schedule of accounts receivable and prove that its total equals the balance in the Accounts Receivable controlling account.AppendixLO1
Step by Step Answer:
Financial Accounting Information For Decisions
ISBN: 9780073043753
4th Edition
Authors: John J. Wild