Salmon Swim Centre uses a sales journal, purchases journal, cash receipts journal, cash payments journal and a general journal. The business also maintains subsidiary ledgers for accounts receivable and accounts payable, in addition to the related control accounts (ignore GST). The relevant account balances as of 31 December 2016 were as follows:

			Account balance
Account no.		Account title	Debit			Credit
100 120 140 200 300 330 400 500 510 520 600 610		Cash at Bank Accounts Receivable Inventory Equipment Accounts Payable Bank Loan S. Salmon, Capital Sales Sales Returns and Allowances Discount Received Purchases Discount Allowed		$  10800 13200 19000 250000 — —          —			$  11000 120000 162000 — —
				$293000			$293000

The accounts receivable and accounts payable subsidiary ledger balances were as follows:

Accounts receivable		Accounts payable
M. Falzon S H Guan R. Jamal A. Khalil K. Mezzini		$  2640 1760 4400 3300 1100		Nelligan Ltd Pellham & Co Yap United Ltd Total		$  2200 2200 6600 $11000
		$13200

The following transactions occurred during the first quarter of 2017:

Jan.

3 11 15 18 20 25

S H Guan took advantage of the 2% sales discount and paid off her account. Sold a $2000 item to K. Mezzini on account, invoice 401. Purchased $6000 of inventory from Pellham & Co on credit. The terms were 2/10, n/30. Received $1200 from M. Falzon on his account. No discount was allowed. Paid $2200 to Pellham & Co on its previous account balance. No discount was taken. Paid $6000 owing to Pellham & Co, taking advantage of the 2% discount.

Feb. Mar.

10 14 23 28 4 16 22 27

A cash sale of $4000 was made to a new customer, E. Tsiros. R. Jamal paid $2200 on his account, outside the discount period. Sold a $1000 item to K. Mezzini on account, invoice 402. Paid $4400 on the Yap United Ltd account. No discount was received. Purchased $8000 in inventory from Nelligan Ltd on credit. Terms were n/30. Sold a $100 item to A. Khalil on account, invoice 403. Paid $4400 on the Nelligan Ltd account. A $100 sales allowance was given to A. Khalil, due to a defective product.

Required

A. Enter the first quarter’s transactions in the appropriate journals.

B. Open the necessary general ledger accounts, the accounts receivable subsidiary ledger accounts, and the accounts payable subsidiary ledger accounts.

C. Post the data from the journals to the appropriate general ledger and subsidiary ledger accounts.

D. Prepare a schedule of accounts receivable and accounts payable as at 31 March 2017, to confirm the balances in the control accounts.

E. Prepare a trial balance as at 31 March 2017.