Exercise 8-1 Subledger accounts LO1

Wallace Contracting recorded the following transactions during November 2023:

General JournalDebitCreditNov. 3Accounts ReceivableABC Shop8,500Sales*8,5008Accounts ReceivableColt Enterprises2,600Sales*2,60011Accounts ReceivableRed McKenzie1,560Sales*1,56019Sales Returns and Allowances*214Accounts ReceivableRed McKenzie21428Accounts ReceivableABC Shop4,980Sales*4,980

*Cost of goods sold (or COGS) has been ignored for the purpose of maintaining focus on accounts receivable.

Required: 1. Enter the preceding transactions into a General Ledger having T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Also, enter the transactions in Accounts Receivable Subledger having a T-account for each customer.

2. Enter the balances of the accounts in the subledger and compare the total with the balance of the Accounts Receivable controlling account.