Set up a Cash Receipts Journal with headings as inFigure 7.4.

(b)

Set up a Cash Payments Journal with headings as inFigure 7.5. The first cheque number will be #70.

(c)

Record these transactions. Refunds on merchandise will be charged to Sales Returns & Allowances and Purchase Returns & Allowances. Invoice amounts include 5% GST (Alberta) unless otherwise stated. Any eligible discounts will be based on the pre-tax value.

20Nov.4Paid Natchke Fabrics for Invoice #367, $660.45 less 2% discount.6Paid Robinson Ltd. $419 for Invoice #112, which had terms of n/30.8Received payment from Sellers & Shaw on invoice #665, $1,900.50 less 3% discount.8Gave refund of $64.90 plus tax to a customer who returned damaged merchandise.9Received cheque from William Wight to cover Invoice #649, $372.75 less 3% discount.12Paid Walton Fixtures Ltd. for Invoice #9029, $302.40 less 1% discount.14Received refund for unwanted merchandise returned to supplier, $53 plus tax.14Received money order for $325.50 from Cambridge Auto Sales for balance owing on Invoice #683. Invoice had terms of n/45.17Customer returned merchandise sold to him last week. We refunded $71.40 plus tax, by cheque.20Issued cheque to The Stationery Store for Invoice #1012. Note: The invoice for $766.50 was dated November 2 and carried terms of 2/10, n/30.24Issued cheque to Dahl Services for Invoice #0039, $220.50 less 2% discount.25Received payment from Peter Seung for Invoice #694, $631.47 less 3% discount.30Received refund for the overcharge on an order of letterhead and envelopes for office, $40 plus tax.

(d)

Total, balance, and rule the journals as usual. (No posting is required.)