Critical Thinking Problem 7.1 Wholesaler Transactions Matrix Toy Company sells toys and games to retail stores. The firm offers a trade discount of 40 percent on toys and 30 percent on games. Its credit sales and sales returns and allowances transactions for August are shown below. The general ledger accounts used to record these transactions are listed below. The balance shown for Accounts Receivable is as of the beginning of August. INSTRUCTIONS 1. Open the general ledger accounts and enter the balance of Accounts Receivable for August 1. 2. Set up an accounts receivable subsidiary ledger. Open an account for each of the credit customers listed below and enter the balances as of August 1. Enter n/45 in the blank space after "Terms." This means each customer has 45 days to pay for the merchandise it purchased, Bombay's Department Store $28,900 The Game Store Little Annie's Toy Store Pinkerton Toy Center Reader's Bookstores Super Game Center 30,500 19,010 3. Record the transactions in a sales journal and in a general journal. Use 9 as the page number for the sales journal and 25 as the page number for the general journal. Be sure to enter each sale at its net price. 4. Post the individual entries from the sales journal and the general journal. 5. Total and rule the sales journal as of August 31. 6. Post the column total from the sales journal to the proper general ledger accounts. 7. Prepare the heading and the Revenue section of the firm's income statement for the month ended August 31. 8. Prepare a schedule of accounts receivable for August 31. 9. Check the total of the schedule of accounts receivable against the balance of the Accounts Receivable account in the general ledger. The two amounts should be equal. GENERAL LEDGER ACCOUNTS 111 Accounts Receivable, $78,410 Dr. 451 Sales Returns and Allowances 401 Sales