Account Sandhill 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 ledger for Sandhill are indicated in the working papers. Presented below are a series of transactions for Sandhill 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 January 1 Number Account Title Opening Balance 101 Cash $37.250 112 Accounts Receivable 13.700 115 Notes Receivable 41,000 120 Inventory 15,500 126 Supplies 1,100 130 Prepaid Insurance 2.100 157 Equipment 6.450 Accumulated Depreciation-Equip. 1,600 Accounts Payable 27,000 Owner's Capital 88.500 158 201 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R Beltre $1,300 B. Santos 7.800 S. Mahay 4,600 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1 Customer Opening Balance S. Meek $8.000 R. Moses 12.000 D. Saito 7.000 Jan. 3 5 7 8 9 10 11 12 13 15 15 16 Sell merchandise on account to B. Corpas $3,200, invoice no. 510, and to J. Revere $1.600, invoice no. 511. Purchase merchandise from S. Gamel $5,000 and D. Posey $3,000, terms n/30. Receive checks from S. Mahay $4,600 and B. Santos $2.000 after discount period has lapsed. Pay freight on merchandise purchased $240. Send checks to S. Meek for $8.000 less 2% cash discount, and to D. Saito for $7.000 less 1% cash discount Issue credit of $300 to J. Revere for merchandise returned. Daily cash sales from January 1 to January 10 total $14.500. Make one journal entry for these sales. Sell merchandise on account to R. Beltre $1.400, invoice no.512, and to S. Mahay $900, invoice no.513. Pay rent of $1.400 for January Receive payment in full from B. Corpas and J. Revere less cash discounts. Withdraw $800 cash by M. Sandhill for personal use. Post all entries to the subsidiary ledgers. Purchase merchandise from D. Saito $15,000, terms 1/10, 1/30; S. Meek $14.800, terms 2/10, 1/30; and S. Gamel $1,300, terms 1/30. Pay $400 cash for office supplies. Return $300 of merchandise to S. Meek and receive credit. Daily cash sales from January 11 to January 20 total $19.100. Make one journal entry for these sales. Issue $12.000 note, maturing in 90 days, to R. Moses in payment of balance due. Receive payment in full from S. Mahay less cash discount Sell merchandise on account to B. Corpas $2.500, invoice no. 514, and to R.Beltre $2,300, invoice no. 515. Post all entries to the subsidiary ledgers. Send checks to D. Saito and S. Meek in full payment less cash discounts. Sell merchandise on account to B. Santos 53.100 invoice no. 516, and to J. Revere $6.000, invoice no. 517. Purchase merchandise from D. Saito $14.900, terms 1/10,n/30: D. Posey $3,300, terms /30; and S. Gamel $5,400, terms 1/30 17 18 20 21 21 22 22 23 25 27 Your answer is correct. Record the January transactions in a sales journal. (Post entries in the order presented in the problem statement.) Sales Journal Date Account Receivable Dr. Sales Revenue Cr. Account Debited Invoice No. Ref. Cost of Good Sold Dr. Inventory Cr. Jan. 3 B. Corpas V 510 3200 1920 Jan. 3 V J. Revere 511 V 1600 960 Jan. 11 R. Beltre 512 1400 840 Jan. 11 V 5. Mahay 513 900 540 Jan. 22 V B. Corpas 514 2500 1500 Jan. 22 V R.Beltre 515 2300 1380 Jan. 25 B. Santos 516 V 3100 1860 Jan. 25 J. Revere 517 6000 3600 21000 12600 Record the January transactions in a single-column purchases journal. (Post entries in the order presented in the problem statement.) Purchases Journal P1 Date Inventory Dr. Accounts Payable Cr. Account Credited Terms Ref. n/30 n/30 1/10, n/30 2/10, n/30