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How do I do this problem? Sun & Surf Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary
How do I do this problem? Sun & Surf Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sun& Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2010, n/30The cost of all merchandise sold was 55% of the sales price. Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826 Jan.3 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30. 5 7 Receive checks from V. Amold $4,000 and I. Tan $2,000 after discount period has lapsed. 8 9 Pay freight on merchandise purchased $235 Send checks to K. Xerxes for S9,000 less 2% cash discount, ard to T. Caper for S1 1,000 less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total S15,500. 11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Amold $900, invoice no. 828. 12 Pay rent of $1,000 for January. 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of $800 cash by J. Sandy for personal use 15 Post all entries to the subsidiary ledgers 16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, 17 18 20 21 21 22 n/30; and R. Drifter S1,500, terms n/30. Pay $400 cash for office supplies. Return $200 of merchandise to K. Xerxes and receive credit. Summary daily cash sales total $20,100. Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due. Receive payment in full from V. Arnold less cash discount. Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830. 22 Post all entries to the subsidiary ledgers. 23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts 25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832. Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30 Post all entries to the subsidiary ledgers. Pay $275 cash for office supplies. Summary daily cash sales total $21,300. 27 27 28 31 31 Pay salaries and wages of $8,100 (continued) Page 1 Sun & Surf Company uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Sun& Surf are indicated in the working papers. Below are a series of transactions for Sun & Surf Co. for the month of January. Credit sales terms are 2010, n/30The cost of all merchandise sold was 55% of the sales price. Sell merchandise on account to M. Knast $5,100, invoice no. 825, and to C. Ryder $1,900, invoice no. 826 Jan.3 Purchase merchandise from R. Drifter $5,000 and N. Sova $2,200, terms n/30. 5 7 Receive checks from V. Amold $4,000 and I. Tan $2,000 after discount period has lapsed. 8 9 Pay freight on merchandise purchased $235 Send checks to K. Xerxes for S9,000 less 2% cash discount, ard to T. Caper for S1 1,000 less 1% cash discount. 9 Issue credit of $300 to C. Ryder for merchandise returned. 10 Summary daily cash sales total S15,500. 11 Sell merchandise on account to D. Gallagher $1,600, invoice no. 827, and to V. Amold $900, invoice no. 828. 12 Pay rent of $1,000 for January. 13 Receive payment in full from M. Knast and C. Ryder less cash discounts. 15 Withdrawal of $800 cash by J. Sandy for personal use 15 Post all entries to the subsidiary ledgers 16 Purchase merchandise from T. Caper $18,000, terms 1/10, n/30; K. Xerxes $14,200, terms 2/10, 17 18 20 21 21 22 n/30; and R. Drifter S1,500, terms n/30. Pay $400 cash for office supplies. Return $200 of merchandise to K. Xerxes and receive credit. Summary daily cash sales total $20,100. Issue $15,000 note, maturing in 90 days, to M. Griffen in payment of balance due. Receive payment in full from V. Arnold less cash discount. Sell merchandise on account to M. Knast $2,700, invoice no. 829, and to D. Gallagher $1,300, invoice no. 830. 22 Post all entries to the subsidiary ledgers. 23 Send checks to T. Caper and K. Xerxes in full payment less cash discounts 25 Sell merchandise on account to I. Tan $3,500, invoice no. 831, and to C. Ryder $6,100, invoice no. 832. Purchase merchandise from T. Caper $14,500, terms 1/10, n/30; N. Sova $1,200, terms n/30; and R. Drifter $5,400, terms n/30 Post all entries to the subsidiary ledgers. Pay $275 cash for office supplies. Summary daily cash sales total $21,300. 27 27 28 31 31 Pay salaries and wages of $8,100 (continued) Page 1
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