evenue and Cash Receipts Journals

Lasting Summer Inc. has $2,510 in the October 1 balance of the accounts receivable account consisting of $1,060 from Champion Co. and $1,450 from Wayfarer Co. Transactions related to revenue and cash receipts completed by Lasting Summer Inc. during the month of October 2016 are as follows:

Oct. 3.	Issued Invoice No. 622 for services provided to Palace Corp., $2,890.
Oct. 5.	Received cash from Champion Co., on account, for $1,060.
Oct. 8.	Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,940.
Oct. 12.	Received cash from Wayfarer Co., on account, for $1,450.
Oct. 18.	Issued Invoice No. 624 for services provided to Amex Services Inc., $2,970.
Oct. 23.	Received cash from Palace Corp. for Invoice No. 622 of October 3.
Oct. 28.	Issued Invoice No. 625 to Wayfarer Co., on account, for $900.
Oct. 30.	Received cash from Rogers Co. for services provided, $120.

a. Prepare a single-column revenue journal to record these transactions. Enter transactions in chronological order.

REVENUE JOURNAL				PAGE 19
DATE	Invoice No.	Account Debited	Post. Ref.	Accounts Rec. Dr. Fees Earned Cr.
2016
		Total

Prepare a cash receipts journal to record these transactions.

If an amount box does not require an entry, leave it blank.

CASH RECEIPTS JOURNAL					PAGE 25
DATE	Account Credited	Post. Ref.	Fees Earned Cr.	Accounts Rec. Cr.	Cash Dr.
2016
	Total

b. Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on October 31, 2016.

Lasting Summer Inc.
Accounts Receivable Customer Balances
October 31, 2016
Amex Services Inc.	$
Sunny Style Inc.
Wayfarer Co.
Total accounts receivable	$

c. Lasting Summer Inc. uses a subsidiary ledger for accounts receivable for all of the following reasons EXCEPT: