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Q3 Corona Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions

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Q3 Corona Company uses a sales journal, a cash receipts journal, and a general journal to record transactions with its customers. Record the following transactions in the appropriate journals. The cost of all merchandise sold was 65% of the sales price. July 2 Sold merchandise for $18,000 to M. Jordan on account. Credit terms 1/10, n/30. Sales invoice No. 100. July 5 Received a check for $1,300 from K. Bryant in payment of his account July 8 Sold merchandise to S. O'Neal for $900 cash. July 10 Received a check in payment of Sales invoice No. 100 from M. Jordan minus the 1% discount July 15 Sold merchandise for $7,000 to K. Jabbar on account. Credit terms 1/10, n/30. Sales invoice No. 101. July 18 Borrowed $15,000 cash from Pacific Bank signing a 6-month, 10% note. July 20 Sold merchandise for $12,000 to J. West on account. Credit terms 1/10, n/30. Sales invoice No. 102. July 25 Issued a credit (reduction) of $760 to J. West as an allowance for damaged merchandise previously sold on account. July 31 Received a check from K. Jabbar for $5,500 as payment on account (10 Marks) CORONA COMPANY Sales Journal S1 Date Account Debited Invoice No. Ref. Acct. Rec. Dr. Sales Rev. Cr. C. of G. S. Dr. Inventory. Cr. CORONA COMPANY General Journal G1 Date Explanation Ref. Debit Credit CORONA COMPANY Cash Receipts Journal CR1 Accounts Date Credited Cash Dr. Sales Discounts Dr. Accounts Rec. Cr. Sales Other Rev. Accounts C. of G. S. Dr. Cr. Cr. Inventory. Cr. Ref. Q1 Certain principles should be followed in the development of an accounting information system. Identify and explain each of the principles ( 2 Marks] Q2. Fraud experts often say that there are three primary factors that contribute to employee fraud. Identify the three factors and explain what is meant by each. [2Marks]

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