Question
Awesome Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2016 follow, along with
Awesome Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2016 follow, along with the general ledger accounts used to record these transactions. |
GENERAL LEDGER ACCOUNTS |
101 | Cash | $ | 17,100 | Dr. |
109 | Notes Receivable | |||
111 | Accounts Receivable | 21,700 | Dr. | |
401 | Sales | |||
451 | Sales Returns and Allowances | |||
452 | Sales Discounts | |||
DATE | TRANSACTIONS | |
April | 1 | Sold merchandise for $4,600 to Soprano Music Center; issued Invoice 9312 with terms of 2/10, n/30. |
3 | Received a check for $1,813 from Music Supply Store in payment of Invoice 6718 of March 25 ($1,850), less a cash discount ($37). | |
5 | Sold merchandise for $1,750 in cash to a new customer who has not yet established credit. | |
8 | Sold merchandise for $5,200 to Music Warehouse, issued Invoice 9313 with terms of 2/10, n/30. | |
10 | Soprano Music Center sent a check for $4,508 in payment of Invoice 9312 of April 1 ($4,600), less a cash discount ($92). | |
15 | Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $870; the original sale was made on Invoice 9313 of April 8. | |
19 | Sold merchandise for $11,200 to Eagleton Music Center; issued Invoice 9314 with terms of 2/10, n/30. | |
23 | Collected $3,150 from Sounds From Yesterday for Invoice 6725 of March 25. | |
26 | Accepted a two-month promissory note for $6,200 from Country Music Store in settlement of its overdue account; the note has an interest rate of 10 percent. | |
28 | Received a check for $10,976 from Eagleton Music Center in payment of Invoice 9314, dated April 19 ($11,200), less a cash discount ($224). | |
30 | Sold merchandise for $10,500 to Contemporary Sounds, Inc.; issued Invoice 9315 with terms of 2/10, n/30. |
2-1 | Record the transactions in a sales journal as of April 2016. |
2-2 | Record the transactions in a cash receipts journal as of April 2016. |
2-3 | Record the transactions in a general journal as of April 2016. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) |
3. | Post the opening balances and transactions into the appropriate ledger accounts. |
6. | Prepare the heading and the Revenue section of the firms income statement for the month ended April 30. |
Analyze: |
What total sales on account were made in the month of April prior to any returns or allowances? |
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