I'M CONFUSED.
S7-10 The cash receipts journal of Slopes Ski Shop appears in The customer's name and account number appear in the For this transaction, we enter Each sale entry is accompanied by an entry that Exhibit 7-8, page 384, along with the company's various Other Accounts/Account Title column to make sure the the account title, Note Payable, debits Cost of Goods Sold and credits Inventory payment received is posted to the subsidiary ledger. in the Other Accounts/Account for the cost of the merchandise sold, since the ledger accounts. Use the data in Exhibit 7-8 to answer the Title Column. perpetual inventory system is being used. Slopes borrowed $1,000 following questions raised by Steve Austin, owner of the from Scotiabank. Cash is Panel A: Cash Receipts Journal debited, and Note Payable to Scotiabank is credited Cash Receipts Journal Page 5 business. in the Other Accounts Credits column because it is an Date Sales Sales Other Accounts unusual transaction. Accounts Discounts Receivable |R Account Title Post Cost of Goods Sold Dr 2020 Cash Amount Inventory Cr Nov 517 290 1. How much were total cash receipts during Slopes collected $900 Note Payable to Scotiabank 222 1.909 from Claudette Cabot. Claudette Cabat 115009. Referring back to November? Exhibit 7-6, we see Brunt Harmon 115115 that on November 2 Interest Revenue 460 2. How much cash did Slopes collect on account from Slopes sold merchandise for $935 to Totals $11/1313 customers? How much in total discounts did Claudette Cabot. customers earn by paying quickly? How much did The terms of sale allowed a $35 discount for prompt payment Totals are posted Total is posted within the discount period. at the end of Individual accounts receivable are Individual amounts Total is at the end of the month. posted daily- are posted at the end of the month. not posted. the month. Slopes' accounts receivable decrease because of collections from customers during November? Panel B: Posting to Ledgers Accounts Receivable Subsidiary Ledger General Ledger 3. How much were cash sales during November? No. 101 Claudette Cabot 115009 Cash Ref Date Item Ret Debit Credit Balance 4. How much did Slopes borrow during November? Date Debit Credit Balance 6, 134 S.3 CR. 5 6,134 Nov . 2 Now. 30 CR. 5 93 Where else could you look to determine whether Accounts Receivable No. 115 Debit Slopes has paid off part of the loan? Brent Harmon 115115 Date Item Ret Debit 4,314 Credit Ref Debit Balance Now. 30 1, 235 4.319 Date CR. 5 day . 13 Credit 3.3 694 CR. 5 694 22 300 394 Inventory No. 131 Date Item R Ref Debit Debit Balance Susan Levy 115249 Wow - 30 Bal- 3,885 3, 885 *Using cash receipts data Date Nov . 16 S.3 907 Credit Balance 107 Note Payable to Scotiabank No. 222 Clay Schmidt 115391 Date Mom Ref. Balance Credit Columns f. Debit Credit Balance Now. 12 CR. 5 Credit 1, 900 1 Debit Columns Date Cash $6,134 Accounts Receivable $1,235 Nov . 27 1, 783 1, 783 Sales Revenue No. 410 Credit Sales Discounts 35 Sales Revenue 3,172 Date Item Ref. Debit Now. 1 Credit 4, 319 Cost of Goods Sold 1,707 1,762 CR. S 4,319 Other Accounts 3,172 1,491 Inventory 1,707 Sales Discounts No. 420 Total $7,876 Total $7,876 Date Item Ref. Debit Debit Now. 30 CR. 5 35 Credit Balance Interest Revenue No. 460 Date Item Ref. Dshit Credit Note: The portting reference CR.5 should not be confused with the abbreviation for credit, Cit. The pasting reference for cash receipts always includes a page number. Now. 25 CR. 5 Credit 762 762 Cost of Goods Sold No. 511 Date Mom Ref. Debit Credit Balane Now . 30 1, 814 ** The total is not posted but the : indicates that each item in the coluran was posted individually, ding a cash frompl to a solvdury-ledger account at we'll in to the Account Receivable control account
