Acorn Industries completes these transactions during July of the current year (the terms of all its credit sales are 2/10, n/30). July 1 Purchased $6,500 of merchandise on credit from Teton Company, terms 2/10, n/30. 3 Issued Check No. 300 to The Weekly for advertising expense of $625. 5 Sold merchandise on credit to Kim Nettle, Invoice No. 918, for $19,200 (cost is $10,500). 6 Sold merchandise on credit to Ruth Blake, Invoice No. 919, for $7,500 (cost is $4,300). 7 Purchased $1,250 of store supplies on credit from Plaine, Inc., terms n/30. 8 Returned $250 of store supplies purchased on July 7 to Plaine, Inc. Acorn reduces Accounts Payable by that amount. 9 Purchased $38,220 of store equipment on credit from Charms Supply, terms n/30. 10 Issued Check No. 301 to Teton Company in payment of its July 1 purchase less the discount of $130. 13 Sold merchandise on credit to Ashton Moore, Invoice No. 920, for $8,550 (cost is $5,230). 14 Sold merchandise on credit to Kim Nettle, Invoice No. 921, for $5,100 (cost is $3,800). 15 Received payment from Kim Nettle for the July 5 sale less the discount of $384. 15 Issued Check No. 302 for $31,850; payee is Payroll, in payment of sales salaries expense for the first half of the month. 15 Cash sales for the first half of the month are $118,350 (cost is $76,330). These cash sales are recorded in the cash receipts journal on July 15. 16 Received payment from Ruth Blake for the July 6 sale less the discount of $150. 17 Purchased $7,200 of merchandise on credit from Drake Company, terms 2/10, n/30. 20 Purchased $650 of office supplies on credit from Charms Supply, terms n/30. 21 Borrowed $15,000 cash from College Bank by signing a long-term note payable. 23 Received payment from Ashton Moore for the July 13 sale less the discount of $171. 24 Received payment from Kim Nettle for the July 14 sale less the discount of $102. 24 Returned $2,400 of defective merchandise purchased on July 17 to Drake Company. Acorn reduces Accounts Payable by that amount. 26 Purchased $9,770 of merchandise on credit from Teton Company, terms 2/10, n/30. 27 Issued Check No. 303 to Drake Company in payment of its July 17 purchase less the return and the $96 discount. 29 Sold merchandise on credit to Ruth Blake, Invoice No. 922, for $17,500 (cost is $10,850). 30 Sold merchandise on credit to Ashton Moore, Invoice No. 923, for $16,820 (cost is $9,840). 31 Issued Check No. 304 for $31,850; payee is Payroll, in payment of the sales salaries expense for the last half of the month. 31 Cash sales for the last half of the month are $80,244 (cost is $53,855). These cash sales are recorded in the cash receipts journal on July 31. Page 283 Required Prepare a sales journal and cash receipts journal. Number both journals as page 3. Enter the transactions of Acorn Industries that should be journalized in the sales journal and those that should be journalized in the cash receipts journal. Ignore transactions that should be journalized in a purchases journal, cash payments journal, or general journal. Open the following general ledger accounts: Cash; Accounts Receivable; Inventory; Long-Term Notes Payable; R. Acorn, Capital; Sales; Sales Discounts; and Cost of Goods Sold. Enter the June 30 balances for Cash ($100,000), Inventory ($200,000), Long-Term Notes Payable ($200,000), and R. Acorn, Capital ($100,000). Also open accounts receivable subsidiary ledger accounts for Kim Nettle, Ashton Moore, and Ruth Blake. Verify that amounts that should be posted as individual amounts from the journals have been posted. (Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings. (a) Prepare a trial balance of the general ledger accounts opened as required for part 2. (b) Prove the accuracy of the subsidiary ledger by preparing a schedule of accounts receivable.