ACR7 (Perpetual Method) Jeter 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 Jeter are indicated in the working papers presented below. Also below are a series of transactions for Jeter Co for the month of January Credit sales terms are 2/10, 1/30. The cost of all merchandise sold was 60% of the sales price GENERAL LEDGER Account January 1 Number Account Title Opening Balance 101 Cash $35.750 112 Accounts Receivable 13,000 115 Notes Receivable 39.000 120 Inventory 18,000 126 Supplies 1,000 130 Prepaid Insurance 2000 157 Equipment 6.450 158 Accumulated Depreciation-Equip. 1,500 201 Accounts Payable 35.000 301 Owner's Capital 78 700 Schedule of Accounts Receivable Schedule of Accounts Payable (from accounts receivable subsidiary ledger) (from accounts payable subsidiary ledger) January 1 January 1 Opening Opening Customer Balance Creditor Balance R. Beltre $1,500 S. Meek $ 9.000 B. Santos 7,500 R Moses 15,000 S. Mahay 4,000 D. Saito 11,000 I Jan. Sell merchandise on account to B. Corpas $3,600, invoice no. 510, and to J. Revere $1,800, invoice no 511 3 5 Purchase merchandise from S. Gamel $5,000 and D. Posey $2,200, terms 1/30. 7 Receive checks from S. Mahay $4,000 and B. Santos $2,000 after discount penod has lapsed 8 Pay freight on merchandise purchased $235. 9 Send checks to S. Meek for $9.000 less 2% cash discount, and to D. Sato for $11.000 less 1% cash discount 9 Issue credit of $300 to J. Revere for merchandise returned. 10 Daly cash sales from January 1 to January 10 total $15,500. Make one journal entry for these sales 11 Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to S. Mahay 8900, invoice no. 513. 12 Pay rent of $1,000 for January 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Jeter for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $15,000, terms 110, 1/30; S. Meek $14200, terms 2/10, 1/30, and S. Camel S1,500 terms 6/30 17 Pay S400 cash for office supplies 18 Return $200 of merchandise to S. Meek and receive credit 20 Daily cash sales from January 11 to January 20 total $20,100. Make one journal entry for these sales. 21 Issue $15,000 note, maturng in 90 days, to Moses in payment of balance due 21 Receive payment in full from S. Mahay less cash discount 22 Sell merchandise on account to B. Corpas $2,700, invoice no. 514, and to R. Bele $2,300, invoice no. 515. 22 Post al entries to the subsidiary ledgers, 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,500, invoice no 516, and 10 J. Revere 56,100, invoice no 517 27 Purchase merchandise from D. Sato $14,500, terms 110, 130, Posey $3,200 terms n30, and S. Gamel 5,400, terms n30 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daly cash sales from January 21 10 January 31 total $21,300. Make one journal entry for these sales. 31 Pay sales salaries S4300 and office salaries $3,800 Record the January transactions in a cash receipts journal. (Post entries in the order presented in the problem statement.) Cash Receipts Date Account Credited Cash Dr. Sales Discounts Dr. Ref. Account Rec Jan. 7 S. Mahay 4000 Jan. 7 B. Santos 2000 i Jan. 10 15500 72 Jan. 13 B. Corpas 3528 Jan 13 J. Revere + 20100 i Jan. 20 18 882 Jan 21 + S. Mahay Jan. 31 21300 68774 Receipts Journal CR1 Sales Revenue Cr. Other Accounts Cr. Cost of Good Sold Dr. Inventory Cr. count Receivable Cr. 4000 2000 i 15500 i 9000 3600 i 1 1500 i 20100 12060 900 12780 21300 12300 21300 Cash Payments Journal Date Other Accounts Dr. Accounts Payable Dr. Account Debited Ref. Jan. 8 Inventory 120 235 Jan. 9 S. Meek 9000 11000 Jan. 9 D. Saito i Jan. 12 Rent Expense 729 1000 i Jan. 15 Owner's Drawings 800 306 i Jan. 17 Jan. 23 S. Meek 15000 Jan. 25 B. Corpas Jan. 28 Jan. 31 Salaries and Wages Expense - 627 8100 Record the January transactions in a cash payments journal. (Post entries in the order presented in the problem statement.) Cash Payments Journal CP1 Accounts Payable Dr. Supplies Dr. Inventory Cr. Cash Cr. 235 9000 8820 Acceptable correct answers also include: 11000 10890 0 1000 i 800 400 400 15000 9600 9600 200 200 8100 Record the January transactions in a two-column general journal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.) Date Debit Credit Jan. 300 Account Titles and Explanation Sales Returns and Allowances Accounts Receivable (Issued credit for merchandise returned.) Accounts Payable 300 200 Jan. 21 200 Purchase Returns and Allowances (Cost of merchandise returned.) Accounts Payable Jan 22 15000 15000 Notes Payable (Received credit for returned goods.) Jan. 11 (Payment of balance due.)