Question
On September 1 the balance of the Accounts Receivable control account in the general ledger of Seaver Company was $10,960. The customers subsidiary ledger contained
On September 1 the balance of the Accounts Receivable control account in the general ledger of Seaver Company was $10,960.
The customers subsidiary ledger contained account balances as follows:
Ruiz $1,440, Kingston $2,640, Bannister $2,060, Crampton $4,820.
At the end of September, the various journals contained the following information.
Sales journal: Sales to Crampton $800; to Ruiz $1,260; to Iman $1,330; to Bannister $1,100.
Cash receipts journal: Cash received from Bannister $1,310; from Crampton $2,300; from Iman $380; from Kingston $1,800; from Ruiz $1,240.
General journal: An allowance is granted to Crampton $220.
Instructions
(a) Set up control and subsidiary accounts and enter the beginning balances.
(b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.)
(c) Prepare a list of customers and prove the agreement of the controlling account with the subsidiary ledger on September 30, 2010.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started