Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).
Apr. 2 Purchased $14,300 of merchandise on credit from Noth Company, terms 2/10, n/60.
3 Sold merchandise on credit to Page Alistair, Invoice No. 760, for $4,000 (cost is $3,000).
3 Purchased $1,480 of office supplies on credit from Custer, Inc., terms n/30.
4 Issued Check No. 587 to World View for advertising expense of $899.
5 Sold merchandise on credit to Paula Kohr, Invoice No. 761, for $8,000 (cost is $6,500).
6 Returned $80 of office supplies purchased on April 3 to Custer, Inc. Wiset reduces Accounts
Payable by that amount.
9 Purchased $12,125 of store equipment on credit from Hal’s Supply, terms n/30.

11 Sold merchandise on credit to Nic Nelson, Invoice No. 762, for $10,500 (cost is $7,000).
12 Issued Check No. 588 to Noth Company in payment of its April 2 purchase less the discount of $286.
13 Received payment from Page Alistair for the April 3 sale less the discount of $80.
13 Sold $5,100 of merchandise on credit to Page Alistair (cost is $3,600), Invoice No. 763.
14 Received payment from Paula Kohr for the April 5 sale less the discount of $160.
16 Issued Check No. 589 for $10,750; payee is Payroll, in payment of sales salaries expense for the first half of the month.
16 Cash sales for the first half of the month are $52,840 (cost is $35,880). These cash sales are recorded in the cash receipts journal on April 16.
17 Purchased $13,750 of merchandise on credit from Grant Company, terms 2/10, n/30.
18 Borrowed $60,000 cash from First State Bank by signing a long-term note payable.
20 Received payment from Nic Nelson for the April 11 sale less the discount of $210.
20 Purchased $830 of store supplies on credit from Hal’s Supply, terms n/30.
23 Returned $750 of defective merchandise purchased on April 17 to Grant Company. Wiset reduces Accounts Payable by that amount.
23 Received payment from Page Alistair for the April 13 sale less the discount of $102.
25 Purchased $11,375 of merchandise on credit from Noth Company, terms 2/10, n/60.
26 Issued Check No. 590 to Grant Company in payment of its April 17 invoice less the return and the $260 discount.
27 Sold $3,170 of merchandise on credit to Paula Kohr, Invoice No. 764 (cost is $2,520).
27 Sold $6,700 of merchandise on credit to Nic Nelson, Invoice No. 765 (cost is $4,305).
30 Issued Check No. 591 for $10,750; payee is Payroll, in payment of the sales salaries expense for the last half of the month.
30 Cash sales for the last half of the month are $73,975 (cost is $58,900). These cash sales are recorded in the cash receipts journal on April 30.

Required
1. Prepare a sales journal and cash receipts journal. Number both journal pages as page 3. Enter the transactions of Wiset Company that should be journalized in the sales journal and those that should be journalized in the cash receipts journal. Ignore transactions that should be journalized in a purchases journal, cash payments journal, or general journal.
2. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory; Long-Term Notes Payable; B. Wiset, Capital; Sales; Sales Discounts; and Cost of Goods Sold. Enter the March 31 balances for Cash ($85,000), Inventory ($125,000), Long-Term Notes Payable ($110,000), and B. Wiset, Capital ($100,000). Also open accounts receivable subsidiary ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.
3. Verify that amounts that should be posted as individual amounts from the journals have been posted. (Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings.
4. (a) Prepare a trial balance of the general ledger accounts opened as required for part 2.

(b) Prove the accuracy of the subsidiary ledger by preparing a schedule of accounts receivable.