Pepper Company completed the following selected transactions and events during March of this year.
(Terms of all credit sales for the company are 2/10, n/30.)
Mar. 4 Sold merchandise on credit to Jennifer Nelson, Invoice No. 954, for $16,800 (cost is $12,200).
6 Purchased $1,220 of office supplies on credit from Mack Company. Invoice dated March 3, terms n/30.
6 Sold merchandise on credit to Dennie Hoskins, Invoice No. 955, for $10,200 (cost is $8,100).
11 Purchased $52,600 of merchandise, invoice dated March 6, terms 2/10, n/30, from Defore Industries.
12 Borrowed $26,000 cash by giving Commerce Bank a long-term promissory note payable.
14 Received cash payment from Jennifer Nelson for the March 4 sale less the discount (Invoice No. 954).
16 Received a $200 credit memorandum from Defore Industries for unsatisfactory merchandise Pepper purchased on March 11 and later returned.
16 Received cash payment from Dennie Hoskins for the March 6 sale less the discount (Invoice No. 955).
18 Purchased $22,850 of store equipment on credit from Schmidt Supply, invoice dated March 15, terms n/30.
20 Sold merchandise on credit to Marjorie Allen, Invoice No. 956, for $5,600 (cost is $3,800).
21 Sent Defore Industries Check No. 516 in payment of its March 6 dated invoice less the return and the discount.
22 Purchased $41,625 of merchandise, invoice dated March 18, terms 2/10, n/30, from Welch Company.
26 Issued a $600 credit memorandum to Marjorie Allen for defective merchandise Pepper sold on March 20 and Allen later returned.
31 Issued Check No. 517, payable to Payroll, in payment of $15,900 sales salaries for the month. Cashed the check and paid the employees.
31 Cash sales for the month are $134,680 (cost is $67,340). (Cash sales are recorded daily but are recorded only once here to reduce repetitive entries.)

Required 1. Open the following selected general ledger accounts: Cash (101), Accounts Receivable (106) Inventory (119), Office Supplies (124), Store Equipment (165), Accounts Payable (201), Long-Term Notes Pay¬ able (251), Sales (413), Sales Returns and Allowances (414), Sales Discounts (415), Cost of Goods Sold (502), and Sales Salaries Expense (621). Open the following accounts receivable ledger accounts: Marjorie Allen, Dennie Hoskins, and Jennifer Nelson. Open the following accounts payable ledger accounts: Defore Industries, Mack Company, Schmidt Supply, and Welch Company.
2. Enter the transactions using a sales journal, a purchases journal, a cash receipts journal, a cash dis¬ bursements journal, and a general journal similar to the ones illustrated in the chapter. Regularly post to the individual customer and creditor accounts. Also, post any amounts that should be posted as indi¬ vidual amounts to general ledger accounts. Eoot and crossfoot the journals and make the month-end postings. Pepper Co. uses the perpetual inventory system.
3. Prepare a trial balance for the selected general ledger accounts in part 1 and prove the accuracy of subsidiary ledgers by preparing schedules of accounts receivable and accounts payable.