+ AC114 M3 - Competency Assessment: Part 8 Question 1 of 1 0.67 / 5 III View Policies Show Attempt History Current Attempt in Progress Sunland Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Sunland are indicated in the working papers presented below. Also following are a series of transactions for Sunland Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price. GENERAL LEDGER Account Number January 1 Opening Balance Account Title 101 Cash $32,500 112 Accounts Receivable 13.500 115 Notes Receivable 41,000 120 Inventory 18,500 126 Supplies 1,400 130 Prepaid Insurance 2,500 157 Equipment 8,700 158 Accumulated Depreciation-Equip. 1,500 201 Accounts Payable 31.000 301 Owner's Capital 85,600 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) Customer January 1 Opening Balance R. Beltre $1,800 B. Santos 7,800 S. Mahay 3,900 Schedule of Accounts Payable (from accounts payable subsidiary ledger) Customer January 1 Opening Balance S. Meek $7,000 R. Moses 15,000 D. Saito 9,000 Jan. 3 Sell merchandise on account to B. Corpas $3,100, invoice no.510, and to J. Revere $1,500, invoice no. 511. 5 7 Purchase merchandise from S. Gamel $6,000 and D. Posey $2,500, terms n/30. Receive checks from S. Mahay $3,900 and B. Santos $2,000 after discount period has lapsed. Pay freight on merchandise purchased $245. 00 8 ON Send checks to S. Meek for $7,000 less 2% cash discount, and to D. Saito for $9,000 less 1% cash discount. + AC114 M3 - Competency Assessment: Part 8 Question 1 of 1