Question
Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firms cash receipts for February and the general
Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firms cash receipts for February and the general ledger accounts used to record these transactions are shown below. GENERAL LEDGER ACCOUNTS
101 | Cash | $ | 5,060 | Dr. | 401 | Sales | |
109 | Notes Receivable | 900 | Dr. | 491 | Interest Income | ||
111 | Accounts Receivable | 4,125 | Dr. | 620 | Cash Short or Over | ||
129 | Supplies | 710 | Dr. | ||||
231 | Sales Tax Payable | 345 | Cr. | ||||
301 | Jason Wilson, Capital | 35,000 | Cr. | ||||
DATE | TRANSACTIONS | ||
Feb. | 3 | Received $600 from Danielle Pelzel, a credit customer, on account. | |
5 | Received a cash refund of $130 for damaged supplies. | ||
7 | Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. | ||
9 | Jason Wilson, the owner, invested an additional $16,000 cash in the business. | ||
12 | Received $480 from Kyela Jones, a credit customer, in payment of her account. | ||
14 | Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. | ||
16 | Received $550 from Sadie Nelson, a credit customer, to apply toward her account. | ||
19 | Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36. | ||
21 | Had cash sales of $5,050 plus sales tax of $404 during the third week of February. | ||
25 | Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes. | ||
28 | Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46. |
Required:
Open the general ledger accounts and enter the balances as of February 1, 2019.
Record the transactions in a cash receipts journal.
Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.
Total, prove, and rule the cash receipts journal as of February 28, 2019.
Post the column totals from the cash receipts journal to the proper general ledger accounts.
Analyze: What total accounts receivable were collected in February?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started