a)Set up a Cash Receipts Journal with headings as in Figure 7.4. (b)Set up a Cash Payments Journal with headings as in Figure 7.5. The first cheque number will be #70. (c)Record these transactions. Refunds on the merchandise will be charged to Sales Returns & Allowances and Purchase Returns & Allowances. Invoice amounts include 5% GST (Alberta) unless otherwise stated. Any eligible discounts will be based on the pre-tax value.

d, Total, balance, and rule the journals as usual. (No posting is required.)

20Nov. 4 Paid Natchke Fabrics for Invoice #367, $660.45 less 2% discount. 6 Paid Robinson Ltd. $419 for Invoice #112, which had terms of n/30.

8 Received payment from Sellers & Shaw on invoice #665, $1,900.50 less 3% discount.

8 Gave refund of $64.90 plus tax to a customer who returned damaged merchandise.

9 Received cheque from William Wight to cover Invoice #649, $372.75 less 3% discount.

12 Paid Walton Fixtures Ltd. for Invoice #9029, $302.40 less 1% discount.

14 Received refund for unwanted merchandise returned to supplier, $53 plus tax.

14 Received money order for $325.50 from Cambridge Auto Sales for balance owing on Invoice #683. Invoice had terms of n/45.

17 Customer returned merchandise sold to him last week. We refunded $71.40 plus tax, by cheque.

20 Issued cheque to The Stationery Store for Invoice #1012. Note: The invoice for $766.50 was dated November 2 and carried terms of 2/10, n/30.

24 Issued cheque to Dahl Services for Invoice #0039, $220.50 less 2% discount.

25 Received payment from Peter Seung for Invoice #694, $631.47 less 3% discount.

30 Received refund for the overcharge on an order of letterhead and envelopes for office, $40 plus tax.

Figure 7.4

Figure 7.5

CASH RECEIPTS JOURNAL DATE ACCOUNT CREDIT MEMO F. ACCTS. REC. CR. SALES DISC. DR. SALES CR. HST PAY. CR. GEN. LED. CR. BANK DR. Aug. 9 Sales 9 Daily sales Refunds 27 5 000 (7 500) 3 5 750 (975) 310 22175 31 7 000 23 Sales Daily sales 23 Sales Returns & Allowances Refunds 41 210 (1 560) (1 2 000) 35 6650 CASH PAYMENTS JOURNAL DATE ACCOUNT DEBIT MEMO . ACCTS. PAY. DR. PURCH. DISC. CR. PURCH DR. HST-ITC DR. GEN. LED. DR. BANK CR. CH. NO. 75 000 Aug. 10 Sales Returns & Allowances HST Payable } Refund 9 750 8 4750 148