Sandhill Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balancesrelated to both the general ledger and the subsidiary ledgers for Sandhill are indicated in the working papers presented below. Alsofollowing are a series of transactions for Sandhill Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of allmerchandise sold was 60% of the sales price. GENERAL LEDGER Account January 1 Number Account Title Opening Balance101 Cash $32.250112 Accounts Receivable 12,300115 Motes Receivable 39,000120 Inventory 20,000126 Supplies 1,700130 Prepaid Insurance 1,500157 Equipment 6,900158 Accumulated Depreciation—Equip. 1,600201 Accounts Payable 34,000 301 Owner's Capital 78,050 Schedule of Accounts Receivable(from accounts receivable subsidiary ledger)January 1CustomerOpening BalanceR. Beltre$1,700B. Santos7,500S. Mahay3,100Schedule of Accounts Payable(from accounts payable subsidiary ledger)January 1CustomerOpening BalanceS. Meek$9,000R. Moses18,000D. Saito7,000 Jan.3Sell merchandise on account to B. Corpas $3,300, invoice no. 510, and to J. Revere $1,700, invoice no. 511.5Purchase merchandise from 5. Gamel $6,000 and D. Posey $3,000, terms n/30.7Receive checks from 5. Mahay $3,100 and B. Santos $2,000 after discount period has lapsed.8Pay freight on merchandise purchased $220.9Send checks to 5. Meek for $9,000 less 2% cash discount, and to D. Saito for $7,000 less 1% cash discount.9Issue credit of $300 to J. Revere for merchandise returned.10Daily cash sales from January 1 to January 10 total $17,000. Make one journal entry for these sales.11Sell merchandise on account to R. Beltre $1,600, invoice no. 512, and to 5. Mahay $900, invoice no. 513.12Pay rent of $2,000 for January.13Receive payment in full from B. Corpas and J. Revere less cash discounts.15Withdraw $800 cash by M. Sandhill for personal use.15Post all entries to the subsidiary ledgers.16Purchase merchandise from D. Saito $15,000, terms 1/10, n/30; 5. Meek $14,600, terms 2/10, n/30; and S. Gamel$2,000, terms n/30.17Pay $700 cash for office supplies.18Return $400 of merchandise to 5. Meek and receive credit.20Daily cash sales from January 11 to January 20 total $21,600. Make one journal entry for these sales.21Issue $18,000 note, maturing in 90 days, to R. Moses in payment of balance due.21Receive payment in full from 5. Mahay less cash discount.22Sell merchandise on account to B. Corpas $2,500, invoice no. 514, and to R. Beltre $2,100, invoice no. 515.22Post all entries to the subsidiary ledgers.23Send checks to D. Saito and 5. Meek for full payment less cash discounts.25Sell merchandise on account to B. Santos $3,500, invoice no. 516, and to J. Revere $6,000, invoice no. 517.27Purchase merchandise from D. Saito $14,200, terms 1/10, n/30; D. Posey $3,400, terms n/30; and 5. Gamel $5,400,terms n/30.27Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies.31 Daily cash sales from January 21 to January 31 total $22.200. Make one journal entry for these sales. 31 Pay sales salaries $4,600 and office salaries $3,400. Record the January transactions in a cash payments journal. (Post entries in the order presented in the problem statement. Select "Not Applicable" in Account Debited column, if no customer is selected.)Cash Payments JournalCP1Other AccountsAccounts PayableSuppliesInventoryCashDateAccount DebitedRef.Dr.Dr.Dr.Cr.Cr.Jan. 5120Jan. 8Jan. 8Jan. 8729Jan. 8306Jan. 12Jan. 13Jan. 17Jan. 21vJan. 28v627 Record the January transactions in a two-column general journal. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. List all debit entries before credit entries.) Date Account Titles and Explanation Debit Credit (Issued credit for merchandise returned.) ~(Cost of merchandise returned.)v(Received credit for returmed goods.)v (Payment of balance due.) Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) General Ledger Cash L gDate Explanation Ref. Debit Credit Balancev | Balance vw CR1w CP1Date Explanation Ref. Debit Credit Balancew Balance +v G1v CR1v 51 Notes Receivable L Y Date Explanation Ref. Debit Credit Balance w Balance W L0 Y [, L 1 Date Explanation Ref. Debit Credit Balancev Balance 4v CP1w G1w G1v P1v 51v CR1v CP1Supplies No. 126Date Explanation Ref. Debit Credit Balancew Balance 'w CP1Prepaid Insurance No. 130Date Explanation Ref. Debit Credit Balancew Balance +Equipment [ L YDate Explanation Ref. Debit Credit Balance v Balance W Accumulated Depreciation-EquipmentNo. 158DateExplanationRef.DebitCreditBalanceBalanceVNotes PayableNo. 200DateExplanationRef.DebitCreditBalanceG1Accounts PayableNo. 201DateExplanationRef.DebitCreditBalanceBalanceVG1G1P1CP1Owner's CapitalNo. 301DateExplanationRef.DebitCreditBalanceBalanceVOwner's DrawingsNo. 306DateExplanationRef.DebitCreditBalanceCP1 Date Explanation Ref. Debit Credit Balancew 51w CR1Sales Returns and Allowances No. 412Date Explanation Ref. Debit Credit BalanceW G1Sales Discounts No. 414Date Explanation Ref. Debit Credit Balancev CR1Cost of Goods Sold [ L1Date Explanation Ref. Debit Credit Balancew G1W 51v CR1Salaries and Wages Expense No. 627Date Explanation Ref. Debit Credit Balancev CP1Rent Expense No. 729Date Explanation Ref. Debit Credit Balance w CP1 Accounts Receivable Subsidiary Ledger Date Explanation Ref. Debit Credit Balancev Balance vw 51W 51 Date Explanation Ref. Debit Credit Balancew 51w Glv CR1v 51 Date Explanation Ref. Debit Credit Balancev Balance vW CR1 Date Explanation Ref. Debit Credit Balancev+ Balance vW CR1W 51w CR1Date Explanation Ref. Debit Credit BalanceW 51W CR1W 51 Accounts Payable Subsidiary Ledger I Date Explanation Ref. Debit Credit Balance v P1 5. MeekDateExplanation Ref.DebitCreditBalanceBalanceVCP1P1G1CP1R. MosesDateExplanation Ref.DebitCreditBalanceBalanceVG1D. SaitoDateExplanation Ref.DebitCreditBalanceBalanceVCP1P1CP1P1 Accounts Payable Accounts ReceivableAccumulated Depreciation-EquipmentCash Cost of Goods Sold Depreciation Expense Equipment Freight-In Income Summary Insurance Expense Interest Expense Interest Payable Inventory Motes Payable Motes Receivable Chwher's Capital Owner's Drawings Prepaid Insurance Prepaid Rent Purchase Returns and Allowances Purchases Rent Expense Salaries and Wages ExpenseSales Discounts Sales Returns and AllowancesSales Revenue Supplies Supplies Expense