Accounting Cycle Review 7-01 a1-f2 Cullumber 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 Cullumber are indicated in the working papers. Presented below are a series of transactions for Cullumber 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 Account Title January 1 Opening Balance 101 Cash $36,500 112 Accounts Receivable 13,800 115 Notes Receivable 37,000 120 Inventory 18,500 126 Supplies 1,800 130 Prepaid Insurance 1,500 157 Equipment 8,250 158 Accumulated Depreciation-Equip. 1,500 201 Accounts Payable 35,000 301 Owner's Capital 80,850 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) Customer R. Beltre B. Santos S. Mahay January 1 Opening Balance $1,600 7,900 4,300 Schedule of Accounts Payable (from accounts payable subsidiary ledger) Customer S. Meek R. Moses D. Saito January 1 Opening Balance $9,000 16,000 10,000