Exercise 8-2

Selected transactions follow for Munchies Sports Ltd. during the companys first month of business. The company uses a perpetual inventory system.

Feb.	2		Sold $1,138 of merchandise to Andrew Noren on account, terms n/30. The goods had cost Munchies $772.
	4		Andrew Noren returned for credit $139 of the merchandise purchased on February 2. The goods had cost Munchies $84 and they were returned to inventory.
	5		Sold $758 of merchandise to Dong Corporation on account, terms 2/10, n/30. The goods had cost Munchies $493.
	8		Sold $845 of merchandise to Michael Collins for cash. The goods had cost Munchies $617.
	10		Sold $929 of merchandise to Rafik Kurji, who paid with a credit card. The goods had cost Munchies $685.
	14		Dong Corporation paid its account in full.
	17		Andrew Noren purchased an additional $695 of merchandise on account, terms n/30. The goods had cost Munchies $412.
	22		Sold $1,726 of merchandise to Batstone Corporation, terms 2/10, n/30. The goods had cost Munchies $1,115.
			28-Andrew Noren paid $999 on account. Prepare the journal entries to record each of the above transactions. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to the nearest whole dollar, e.g. 5,275.) Set up T accounts for the Accounts Receivable general ledger (control) account and for the Accounts Receivable subsidiary ledger accounts. Post the journal entries to these accounts. (Post entries in the order of journal entries presented in the previous part.) Prepare a list of customers and the balances of their accounts from the subsidiary ledger. Prove that the total of the subsidiary ledger balances is equal to the control account balance. (If an answer is zero, please enter 0. Do not leave any fields blank.)