The general ledger of Ariba Genetics includes the following selected accounts: Cash Accounts Receivable Inventory. Notes Receivable. Supplies... Land 11 Sales Revenue.. 41 12 Sales Discounts. 42 13 Sales Returns and Allowances. 43 15 Interest Revenue 47 16 Cost of Goods Sold.. 51 18 All credit sales are on the company's standard terms of 2/10 n/30. Transactions in July that affected sales and cash receipts were as follows:

July 2 Sold inventory on credit to Intelysis. Inc.. $2.400. Ariba's cost of these goods was $1.400. 3 As an accommodation to a competitor. sold supplies at cost. $85, receiving cash. Cash sales for the week totaled $1.890 (cost, $1,640). 7 9 Sold merchandise on account to A. L. Prince. $7.320 (cost. $5,110). 10 Sold land that cost $10.000 for cash of $10,000. 11 12 14 45 Sold goods on account to Sloan Electric. $5.104 (cost. $3.520). Received cash from Intelysis in full settlement of its account receivable from July 2. Cash sales for the week were $2.106 (cost, $1.530). 15 Sold inventory on credit to the partnership of Wilkie & Blinn. $3.650 (cost. 18 20 21 22 25 25 27 28 29 30 $2.260). Received inventory sold on July 9 to A. L. Prince for $600. The goods shipped were unsatisfactory. These goods cost Ariba $440. Sold merchandise on account to Sloan Electric. $629 (cost. $450). Cash sales for the week were $990 (cost. $690). Received $4,000 cash from A. L. Prince in partial settlement of his account receivable. Received cash from Wilkie & Blinn for its account receivable from July 15. Sold goods on account to Olsen Co., $1.520 (cost. $1,050). Collected $5.125 on a note receivable, of which $125 was interest. Cash sales for the week totaled $3,774 (cost. $2,460). Sold inventory on account to R. O. Bankston, $242 (cost. $170). Received goods sold on July 25 to Olsen Co. for $40. The inventory was dam- aged in shipment. The salvage value of these goods was $10. Record the inven- tory at its salvage value. 31 Received $2,720 cash on account from A. L. Prince. Required 1. Ariba records sales returns and allowances in the general journal. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. col- umn), a cash receipts journal, and a general journal. 2. Total each column of the cash receipts journal. Show that total debits equal total credits. 3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.