S7-10 The cash receipts journal of Slopes Ski Shop appears in Exhibit 7-8, page 384, along with the company's various ledger accounts. Use the data in Exhibit 7-8 to answer the following questions raised by Steve Austin, owner of the business. Accounts 300 H sted daily. shreceipts always n.25 The customer's name and account number appear in the For this transaction, we enter Each sale entry is accompanied by an entry that Other Accounts/Account Title column to make sure the the account title, Note Payable debits Cost of Goods Sold and credits Inventory payment received is posted to the subsidiary ledger. in the Other Accounts/Account for the cost of the merchandise sold, since the Title Column perpetual inventory system is being used. Slopes borrowed $1,000 from Scotiabank. Cash is Panel A: Cash Receipts Journal debited, and Note Payable to Scotiabank is credited Cash Receipts Journal Page 5 in the Other Accounts Credits Other Accounts column because it is an Date Sales Sales Cost of Goods Sold Dr Post. unusual transaction 2020 Cash Discounts Receivable Revenue Account Title Ref. Amount Inventory Nov. 512 511 Slopes collected $900 12 1,000 Note Payable to scotiaan 21,000 35 from Claudette Cabot. 935 claudette chat 50090 Referring back to 19 - 1531 22 300 0 Brent Haron 115115 Exhibit 7-6, we see 1 25 Interest Revenge 460762 that on November 2 28 IT1102 991 Slopes sold merchandise 304 612 35 1.235 Totals for $935 to (101) (420) (115) 30171231 Claudette Cabot The terms of sale allowed a $35 Totals are posted Individual accounts Individual amounts Total is posted discount for prompt payment Total is at the end of receivable are are posted at the at the end of within the discount period. not posted the month end of the month the month. Panel B: Posting to Ledgers Accounts Receivable Subsidiary Ledger General Ledger Cash No. 101 claudette Cabot 115009 Arn Debit Urni. Date Item Ret Debit Credit Balance Date Ref. Debit Credit Balance Nov. 30 CR. 6,134 6,134 Nov. 2 3.3 935 935 935 0 Accounts Receivable No. 115 Debit Brent Harmon 115115 Date Item Ret Debit Credit Balance Unl Now. 30 S.3 4,319 Date Ref Debit Credit 30 1,235 3,084 Nov. 13 694 694 22 300 394 Inventory No. 131 24 Jeni. Debit Date Item.Ref Ref. Debit Credit Balance Susan Levy 115249 No. 1 Bal. 3,885 3,885 30 s.) 1,814 2,071 Date Ret. Debit Credit Balance ICR. 30 1.707 344 Nov.18 3.3 907 907 Note Payable to Scotiabank No. 222) Jul. Credit Clay Schmidt Date Item Rel. Debit 115391 Credit Balance Nov.12 Jeni. CR. 5 Debit Columns Credit Columns 1,000 1,000 Date Ref. Debit Credit Balance Nov. 27 5.3 Cash Accounts Receivable $1,235 1,783 Sales Revenge No. 410 Jenl. Sales Discounts Credit 35 Sales Revenue 3,172 Date Item Ref. Debit Credit Balance Now, 1 5.3 4,319 4,319 Cost of Goods Sold 1,707 Other Accounts 1,762 30 CR. 3,172 7.491 Inventory 1,707 Sales Discounts No. 4201 Total $7,876 Total $7,876 Jenl. Debit Date Item Ref. Debit Credit Balance Nov. 30 CR. 5 35 35 Interest Revenue No. 460 Jenl. Credit Note: The posting reence CRS should not be confused with the abbreviation Date Item Ref. Debit Credit Balance CR.5 762 762 1. How much were total cash receipts during November? 2. How much cash did Slopes collect on account from customers? How much in total discounts did customers earn by paying quickly? How much did Slopes' accounts receivable decrease because of collections from customers during November? 3. How much were cash sales during November? 4. How much did Slopes borrow during November? Where else could you look to determine whether Slopes has paid off part of the loan? CR.5 5.3 *Using cash receipts data $6,134 Cost of Goods Sold Jenl. Date Item Ref. Debit Now.301 30 CR.S 1,707 Credit No. 511 Debit Balance 1,814 3,521 1,814 * Acustomer name an appear in the Account Telecome because we are recording a cash cript to subsidiary ledger account as well as to the Accounts Receivable control account **The total is not posted but the indicates that each item in the column was posted individually