P7-27B Using the sales, cash receipts, and general journals Assume Peaceful Spring Company uses the perpetual inventory system. The general ledger of Peaceful Springs Company includes the following selected accounts, along with their account numbers: Number Account Number Account 11 Cash 18 Equipment Land 12 19 Accounts Receivable Notes Receivable 13 41 Sales Revenue 15 51 Cost of Goods Sold Merchandise Inventory Office Supplies 16 Sales and cash receipts transactions in November were as follows: Nov. 2 Sold merchandise inventory on credit, terms n/30, to Intelysis, Inc., $2,200 (cost, $400) 6 Sold office supplies to an employee at cost, $85, receiving cash. 6 Cash sales for the week totaled $2,400 (cost, $1,400). 8 Sold merchandise inventory on account, terms n/30, to A. Z. Morris, $7,500 (cost, $5,000). 9 Sold land that cost $9,000 for cash of the same amount. 11 Sold merchandise inventory on account, terms n/30, to Sloan Electric, $5,000 (cost, $3,450). 11 Received cash from Intelysis in full settlement of its account receivable from November 2. 13 Cash sales for the week were $2,200 (cost, $1,750). 15 Sold merchandise inventory on credit, terms n/30, to West and Michael, $3,000 (cost, $2,200). Sold merchandise inventory on account, terms n/30, to Sloan Electric, $700 (cost, $200). 20 Cash sales for the week were $940 (cost, $640). 21 Received $4,400 cash from A. Z. Morris in partial settlement of its account receivable. 19 22 Received cash from West and Michael for its account receivable from November 15. 22 Sold merchandise inventory on account, terms n/30, to Olivia Co., $1,510 (cost, $980). 25 Collected $5,800 on a note receivable. There was no interest earned. 27 Cash sales for the week totaled $3,780 (cost, $2,430). 27 Sold merchandise inventory on account, terms n/30, to R. A. Brown, $230 (cost, $110). 30 Received $2,200 cash on account from A. Z. Morris. 1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, and a general journal . Peaceful Springs Glass Company records sales returns and allowances in the general journal. 2. Total each column of the sales journal and the cash receipts journal. Show that total debits equal total credits. 3. Show how postings would be made by entering the account numbers and check marks in the appropriate places in the journals. (Assume all postings are made to the applicable ledgers.)