PA1. LO 7.2 On June 30, Oscar Inc.'s bookkeeper is preparing to close the books for the month. The accounts receivable control total shows a
PA1. LO 7.2 On June 30, Oscar Inc.'s bookkeeper is preparing to close the books for the month. The accounts
receivable control total shows a balance of $2,820.76, but the accounts receivable subsidiary ledger shows total
account balances of $2,220.76. The accounts receivable subsidiary ledger is shown here. Can you help find the
mistake?
ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER Account: Amazoon AR No. 246 Balance Date Item Ref. Debit Credit Debit Beginning Balance 1,200.50 Apr. 5 Payment CR 175 1200.50 0.00 Account: Cadberry AR No. 357 Balance Date Item Ref. Debit Credit Debit Beginning Balance 877.30 Apr. 8 Invoice 210 SJ 123 300 1,177.30 Account: Hewlit Pickard AR No. 468 Balance Date Item Ref. Debit Credit Debit Beginning Balance 172.99 Apr. 28 Invoice 211 SJ 123 100 272.99 Account: Neatflicks inc. AR No. 579 Balance Date Item Ref. Debit Credit Debit Beginning Balance 1,570.47 Apr. 6 Payment CR 175 500 1,070.47 Apr. 22 Invoice 212 CJ 123 300 770.47PA2. LO 7.4 Evie Inc. has the following transactions during its first month of business. Journalize the transactions that go in the sales journal. Jun. 1 Credit sale (invoice #1) to Green Lantern Inc. (acc #101) for $1,999 Jun. 2 Credit sale (invoice #2) to Wonder Woman Inc. (acc #102) for $2,000 Jun. 3 Credit sale to Flash Inc. (invoice #3) (acc #103) for $3,050 Jun. 4 Received $1,000 on account from Green Lantern Inc. Jun. 5 Credit sale (invoice #4) to Black Panther Inc. (acc #104) for $1,875 Jun. 6 Received the full amount from Flash Inc.PA3. LO 7.4 The following transactions occurred for Donaldson Inc. during the month of July. Jul. 1 Sold 50 items to Palm Springs Inc. and offered terms of 2/10, n/30, $4,000 on July 1, and issued invoice #12 on account number #312 Jul. 5 Sold 20 thing-a-jigs to Miami Inc. for $2,150 cash on July 5, and issued invoice #13 Jul. 8 Sold 30 what-is to Smith Mfg. for $5,000 and offered terms of 2/10, n/30; issued invoice #14 on account number #178 Jul. 9 Received payment from Palm Springs Inc. Jul. 22 Received payment from Smith Mfg. after expiration of the discount period Record the transactions for Donaldson Inc. in the proper special journal and subsidiary ledger.PA4. LO 7.4 Use the journals and ledgers that follow. Total the journals. Post the transactions to the subsidiary ledger and (using T-accounts) to the general ledger accounts. Then prepare a schedule of accounts receivable. SALES JOURNAL Page 79 DR Accts. DR COGS CR Receivable Merchandise Date Account Invoice No. Ref. CR Sales Inventory 2019 Feb. 4 Evert Company (E123) 17433 1,000.00 Feb. 8 King Inc. (K331) 17434 775.30 Feb. 14 Martina Inc. (M132) 17435 2,301.99 Feb. 16 Shriver Company (5101) 17436 500.00 SALES JOURNAL Page 102 Accounts Sales Receivable, Discounts Sales, or Other Date Account Invoice No. Ref. Cash DR DR Accounts CR 2019 Feb. 1 Cash Sales 465 465 Feb. 5 Payment from Evert 1723 980 20 1,000 Feb. 15 Bank loan (230) 2,000 2,000 Feb. 21 Payment from Shriver Co. 1719 500 500PA5. LO 7.4 Brown Inc. records purchases in a purchases journal and purchase returns in the general journal. Record the following transactions using a purchases journal, a general journal, and an accounts payable subsidiary ledger. The company uses the periodic method of accounting for inventory. Oct. 1 Purchased inventory on account from Price Inc. for $2,000 Oct. 1 Purchased inventory on account from Cabrera Inc. for $3,000 Oct. 8 Returned half of the inventory to Price Inc. Oct. 9 Purchased inventory on account from Price Inc. for $4,200 019, Rice University. All Rights Reserved
