1. Journalize the account receivable and account payable transactions (transactions are described on the next page) in a general journal, post them to the general ledger (just the accounts receivable and accounts payable accounts), and record the transactions in the appropriate subsidiary accounts. You do not need to enter descriptions in the journal - just the date, account names, and the amounts (Debit/Credit).

When recording an account receivable transaction, please note the customers name and the invoice number. For example, if $1,000 was sold to a company named XYZ company on invoice #1001, you would record the entry in this format:

Accounts	Debit	Credit
Accounts Receivable (XYZ Company, Invoice # 1001)	1,000
Sales		1,000

Do the same for any entry that effects the accounts payable (i.e., vendor name and invoice #).

Bring each balance up to date after each transaction by entering the correct Excel formula. For example, if you enter a debit into the General Ledger account for Accounts Receivable, enter a formula in the balance column to increase the account balance; bringing the account up-to-date. Do the same with the GL account for Accounts Payable, and the subsidiary accounts (Accounts Receivable and Accounts Payable.) Think of it this way - you will be maintaining real-time data in both the general ledger and the subsidiary ledger.

2. After completing the last transaction, go to the Reconciliation sheet and enter the final general ledger balance for both the accounts receivable and accounts payable and then compare those balances to the sum of the final balances from the subsidiary ledgers.

PLEASE NOTE:

This assignment focuses on accounts receivable and payables. To save time and effort, you wont be posting to any other general ledger accounts. The general intent (learning objective) of the assignment is to review the workings of subsidiary ledgers.

TRANSACTIONS

Below are transactions of a company named Naples Industries (the subject company of this assignment). Here are some important facts:

• As you begin this assignment, there are account balances in the Naples Industries general ledger and the subsidiary ledgers. The balances are carried forward from the previous business day.

• The subsidiary ledgers are in balance with their associated general ledger balances when business starts up on Jan 2.

Please process the following transactions by first recording them in the general journal (journalizing), posting to the general ledger, and recording them in the subsidiary ledgers. Please use the following accounts when journalizing the transactions: Cash, Accounts Receivable, Supplies, Accounts Payable, Sales, and Sales Allowances. Assume that the company uses a periodic inventory system and therefore, do not record the effect on cost of goods sold or inventory when a sale is made.

Transactions:

Date	Description
Jan 2	Sold $5,000 (invoice #150) of product to Smith Company on account.
Jan 2	Paid $1,000 on the account balance owed to a supplier named: Solar Circus. The original Solar Circus invoice # was 117.
Jan 3	Purchased on account, supplies of $500 (invoice #40) from a vendor named: A&P.
Jan 3	Returned $1,500 of supplies to a vendor named PB&J. The supplies were originally purchased on account (invoice #301) and has not yet been paid for by Naples Industries. PB&J issues a credit memo to Naples Industries to recognize that a return has been made in lieu of payment.
Jan 4	Received a check from a customer named: Jackson Company for $11,000 as a partial payment of its outstanding account balance. This is related to invoice 115.
Jan 5	Received a return from a customer name: Scissor Corp. for $5,000 of product. Naples Industries needs to credit the customers account as this was part of a sale (invoice #101) made on credit. Debit the Inventory account.
Jan 5	Purchased on account, $750 of supplies from K-3 Inc. (K-3s invoice number is #444)
Jan 6	Sold $500 of product to Notepad Ltd on account (Invoice #151). Reminder: ignore the effect on cost of goods sold and inventory as a result of this sale.
Jan 7	ABC Company contacted Naples to complain about a potential defect in a product they purchased last month. Naples agreed to credit ABC Accounts Receivable for $700 (against the amount they owe) and record a Sales Allowance (debit). This is related to invoice #99.

After you have journalized, posted to the general ledger accounts, and recorded entries in the subsidiary ledgers. Please perform a reconciliation (last sheet in the Excel workbook) of both the accounts receivable and accounts Payable on the sheet named: Reconciliations.

Save your file and then upload it via the Assignment in myCourses.

a. Post a general journal

b. Post an accounts receivable subsidiary ledger

c. Post accounts payable subsidiary ledger

d. Post general ledger accounts

e. Post reconciliation of accounts receivable and accounts payable