River’s Edge Canoe & Kayak uses special journals and an accounts receivable subsidiary ledger for recording business transactions. The accounts receivable subsidiary ledger accounts and certain general ledger accounts are included in your working papers. The current account balances are recorded in the accounts. 

Instructions 

In your working papers: 

1. Record the transactions on page 7 in the cash receipts journal.

2. Post the amounts from the Accounts Receivable Credit column to the customers’ accounts in the accounts receivable subsidiary ledger. Post the individual amounts in the General Credit column to the general ledger accounts.

3. Foot, prove, total, and rule the cash receipts journal.

4. Post the column totals to the general ledger accounts named in the column headings.

5. Prepare a schedule of accounts receivable.

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Date Transactions May 2 Received $400 from Paul Drake to apply on his account, Receipt 505. 5 7 10 Received $2,940 from Adventure River Tours in payment of its $3,000 account less a 2% cash discount of $60, Receipt 506. Sold old shelving (Store Equipment) for $50, Receipt 507. Wildwood Resorts sent us a check for $2,425 in payment of its account, $2,500 less a 3% cash discount of $75, Receipt 508. Cash sales totaled $2,000 plus $100 in sales tax, Tape 20. 15 Bankcard sales were $3,000 plus $150 in sales tax, Tape 20. 18 Celeste Everett sent us a check for $150 to apply on her account, Receipt 509. 15 20 Isabel Rodriquez sent us $100 to apply on her account, Receipt 510. 30 Cash sales were $4,500 plus $225 sales tax, Tape 21. Bankcard sales totaled $3,800 plus sales tax of $190, Tape 21.