Nights Watch Security Inc. uses a perpetual inventory system and both an accounts receivable and an accoun

payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledger for Nights

Watch Security Inc. are indicated in the working papers. Below are a series of transactions for Nights Watch

Security Inc. for the month of October. Credit sales terms are $1/10,\frac{n}{25}.$ The cost of all merchandise sold wa

$26\%$ of the sales price. Round all numbers to whole dollars.

Oct. Purchase merchandise from L$.$ Varys $\frac{1}{10},\frac{n}{30}$ for $$51,000$ and T$.$ Greyjoy for $$22,500,$ terms $\frac{2}{10}.$

$3\frac{n}{30}.$

$5$ Receive checks from S$.$ Stark $$16,400$ and J$.$ Snow $$16,700$ after the discount period has lapsed.

$6$ Receive $$500$ worth of office supplies on account.

$7$ Sell merchandise on account to D$.$ Targaryen $$12,000,$ invoice no$.125,$ and to T$.$ Lannister $$15,200,$

invoice no$.126.$

$8$ Freight on merchandise purchased from T$.$ Greyjoy for $$240$ paid for with cash $($FOB Shipping

point$)$

$9$ Send checks to T$.$ Greyjoy for $$19,000$ less $2\%$ cash discount, and to S$.$ Tarly for $$25,000.$

$9$ Summary daily cash sales total $$35,650.$

$10$ Withdrawal of $$15,500$ cash by B$.$ Tarth for personal use.

$11$ Sell merchandise on account to J$.$ Snow $$16,600,$ invoice no$.127,$ and to S$.$ Stark $$12,900,$ invoice

no$.128.$

$12$ Pay rent in cash of $$18,000$ for October, November and December. $($Hint: this is a prepaid account$)$

$13$ Receive payment in full from T$.$ Lannister less cash discount and J$.$ Mormont who paid after the cash

discount period was up$.$

$15$ Return $$5,000$ of merchandise to T$.$ Greyjoy and receive credit.

Post all entries to the subsidiary ledgers.

$16$ Purchase merchandise from L$.$ Varys $$18,000,$ terms $\frac{1}{10},\frac{n}{30}$; D$.$ Seaworth $$14,200,$ terms $\frac{2}{10},$

$\frac{n}{30}$; and $S.$ Tarly $$23,500,$ terms $\frac{n}{30}.$

$17$ Pay $$2,400$ cash for office supplies.

$18$ Summary daily cash sales total $$40,155.$

$20$ Issue credit of $$5,200$ to D$.$ Targaryen for merchandise returned

$21$ Issue $$61,000$ note, maturing in $90$ days, to vendor $S.$ Clegane in payment of the account balance due.