Matrix Toy Company sells toys and games to retail stores The firm offers a trade discount of 40 percent on toys and 30 percent on games Its credit sales and sales returns and allowances transactions for August 20X1 are shown below The general ledger accounts used to record these transactions are listed below The balance shown for Accounts Receivable is as of the beginning of August All customers have n 45 credit terms GENERAL LEDGER ACCOUNTS 111 Accounts Receivable, $74,800 Dr 401 Sales 451 Sales Returns and Allowances DATE TRANSACTIONS August 1 Sold toys to Bombay's Department Store issued Invoice 1001, which shows a list price of $20,500 and a trade discount of 30 percent 5 Sold games to Reader's Bookstores issued Invoice 1002, which shows a list price of $23,200 and a trade discount of 40 percent 9 Sold games to Super Game Center issued Invoice 1003, which shows a list price of $7,600 and a trade discount of 30 percent 14 Sold toys to Little Annie's Toy Store issued Invoice 1004, which shows a list price of $27,500 and a trade discount of 30 percent 18 Accepted a return of all the games shipped to Super Game Center because they were damaged in transit issued Credit Memo 151 for the original sale made on Invoice 1003 on August 9 22 Sold toys to The Game Store issued Invoice 1005, which shows a list price of $17,800 and a trade discount of 40 percent 26 Sold games to Bombay's Department Store issued Invoice 1006, which shows a list price of $22,700 and a trade discount of 30 percent 30 Sold toys to Pinkerton Toy Center issued Invoice 1007, which shows a list price of $25,100 and a trade discount of 40 percent Bombay's Department Store $ 27,700 The Game Store Little Annie's Toy Store 28,100 Pinkerton Toy Center Reader's Bookstores Super Game Center 19,000 Required Open the general ledger accounts and enter the balance of Accounts Receivable for August 1 Set up an accounts receivable subsidiary ledger Open an account for each of the credit customers listed above and enter the balances as of August 1 Enter n 45 in the blank space after Terms This means each customer has 45 days to pay for the merchandise it purchased Record the transactions in a sales journal and in a general journal Post the individual entries from the sales journal and the general journal Total the sales journal as of August 31 Post the column total from the sales journal to the proper general ledger accounts Prepare the heading and the Revenue section of the firms income statement for the month ended August 31 Prepare a schedule of accounts receivable for August 31 Check the total of the schedule of accounts receivable against the balance of the Accounts Receivable account in the general ledger The two amounts should be equal Analyze What is the effect on net sales if the company offers a series of trade discounts on toys (25 percent, 15 percent) instead of a single 40 percent discount Complete this question by entering your answers in the tabs below Prepare a schedule of accounts receivable for August 31 ost the opening balances, sales return transactions and column totals from the caloc inurn Complete this question by entering your answers in the tabs below What is the effect on net sales if the company offers a series of trade discounts on toys ( 25 percent, 15 percent) instead of a single 40 percent discount (Select NE if there is no effect ) Complete this question by entering your answers in the tabs below Prepare a sales journal to record the above transactions Complete this question by entering your answers in the tabs below Prepare the Revenue section of the firm's income statement for the month ende ThAugust31 Record transaction in the general journal (If no entry is required for a particular transaction, select No j first account field ) Journal entry worksheet Record the first entry required in the general journal Note Enter debits before credits Complete this question by entering your answers in the tabs below Prepare a schedule of accounts receivable for August 31 ost the opening balances, sales return transactions and column totals from the caloc inurn Complete this question by entering your answers in the tabs below What is the effect on net sales if the company offers a series of trade discounts on toys ( 25 percent, 15 percent) instead of a single 40 percent discount (Select NE if there is no effect ) Complete this question by entering your answers in the tabs below Prepare a sales journal to record the above transactions Complete this question by entering your answers in the tabs below Prepare the Revenue section of the firm's income statement for the month ende ThAugust31 Record transaction in the general journal (If no entry is required for a particular transaction, select No j first account field ) Journal entry worksheet Record the first entry required in the general journal Note Enter debits before credits

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Matrix Toy Company sells toys and games to retail stores. The firm offers a trade discount of 40 percent on toys and 30 percent on

Matrix Toy Company sells toys and games to retail stores. The firm offers a trade discount of 40 percent on toys and 30 percent on games. Its credit sales and sales returns and allowances transactions for August 20X1 are shown below. The general ledger accounts used to record these transactions are listed below. The balance shown for Accounts Receivable is as of the beginning of August. All customers have n/45 credit terms. GENERAL LEDGER ACCOUNTS

111	Accounts Receivable, $74,800 Dr.
401	Sales
451	Sales Returns and Allowances

DATE	TRANSACTIONS
August	1	Sold toys to Bombay's Department Store; issued Invoice 1001, which shows a list price of $20,500 and a trade discount of 30 percent.
	5	Sold games to Reader's Bookstores; issued Invoice 1002, which shows a list price of $23,200 and a trade discount of 40 percent.
	9	Sold games to Super Game Center; issued Invoice 1003, which shows a list price of $7,600 and a trade discount of 30 percent.
	14	Sold toys to Little Annie's Toy Store; issued Invoice 1004, which shows a list price of $27,500 and a trade discount of 30 percent.
	18	Accepted a return of all the games shipped to Super Game Center because they were damaged in transit; issued Credit Memo 151 for the original sale made on Invoice 1003 on August 9.
	22	Sold toys to The Game Store; issued Invoice 1005, which shows a list price of $17,800 and a trade discount of 40 percent.
	26	Sold games to Bombay's Department Store; issued Invoice 1006, which shows a list price of $22,700 and a trade discount of 30 percent.
	30	Sold toys to Pinkerton Toy Center; issued Invoice 1007, which shows a list price of $25,100 and a trade discount of 40 percent.


Bombay's Department Store	$	27,700
The Game Store
Little Annie's Toy Store		28,100
Pinkerton Toy Center
Reader's Bookstores
Super Game Center		19,000

Required:

Open the general ledger accounts and enter the balance of Accounts Receivable for August 1.
Set up an accounts receivable subsidiary ledger. Open an account for each of the credit customers listed above and enter the balances as of August 1. Enter n/45 in the blank space after Terms. This means each customer has 45 days to pay for the merchandise it purchased.
Record the transactions in a sales journal and in a general journal.
Post the individual entries from the sales journal and the general journal.
Total the sales journal as of August 31.
Post the column total from the sales journal to the proper general ledger accounts.
Prepare the heading and the Revenue section of the firms income statement for the month ended August 31.
Prepare a schedule of accounts receivable for August 31.
Check the total of the schedule of accounts receivable against the balance of the Accounts Receivable account in the general ledger. The two amounts should be equal.

Analyze: What is the effect on net sales if the company offers a series of trade discounts on toys (25 percent, 15 percent) instead of a single 40 percent discount?

Complete this question by entering your answers in the tabs below. Prepare a schedule of accounts receivable for August 31. ost the opening balances, sales return transactions and column totals from the caloc inurn Complete this question by entering your answers in the tabs below. What is the effect on net sales if the company offers a series of trade discounts on toys ( 25 percent, 15 percent) instead of a single 40 percent discount? (Select "NE". if there is no effect.) Complete this question by entering your answers in the tabs below. Prepare a sales journal to record the above transactions. Complete this question by entering your answers in the tabs below. Prepare the Revenue section of the firm's income statement for the month ende ThAugust31. Record transaction in the general journal. (If no entry is required for a particular transaction, select "No j first account field:) Journal entry worksheet Record the first entry required in the general journal. Note: Enter debits before credits. Complete this question by entering your answers in the tabs below. Prepare a schedule of accounts receivable for August 31. ost the opening balances, sales return transactions and column totals from the caloc inurn Complete this question by entering your answers in the tabs below. What is the effect on net sales if the company offers a series of trade discounts on toys ( 25 percent, 15 percent) instead of a single 40 percent discount? (Select "NE". if there is no effect.) Complete this question by entering your answers in the tabs below. Prepare a sales journal to record the above transactions. Complete this question by entering your answers in the tabs below. Prepare the Revenue section of the firm's income statement for the month ende ThAugust31. Record transaction in the general journal. (If no entry is required for a particular transaction, select "No j first account field:) Journal entry worksheet Record the first entry required in the general journal. Note: Enter debits before credits