Sunland Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger. Balances related to both the general ledger and the subsidiary ledgers for Sunland are indicated in the working papers presented below. Also following are a series of transactions for Sunland Co. for the month of January. Credit sales terms are 2/10, n/30. The cost of all merchandise sold was 60% of the sales price.

GENERAL LEDGER
Account Number	Account Title	January 1 Opening Balance
101	Cash	$32,500
112	Accounts Receivable	13,500
115	Notes Receivable	41,000
120	Inventory	18,500
126	Supplies	1,400
130	Prepaid Insurance	2,500
157	Equipment	8,700
158	Accumulated Depreciation-Equip.	1,500
201	Accounts Payable	31,000
301	Owner's Capital	85,600

Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) \begin{tabular}{|c|c|} \hline Customer & \begin{tabular}{c} January 1 \\ Opening Balance \end{tabular} \\ \hline R. Beltre & $1,800 \\ \hline B. Santos & 7,800 \\ \hline S. Mahay & 3,900 \\ \hline \end{tabular} Schedule of Accounts Payable (from accounts payable subsidiary ledger) \begin{tabular}{|c|c|} \hline Customer & \begin{tabular}{c} January 1 \\ Opening Balance \end{tabular} \\ \hline S. Meek & $7,000 \\ \hline R. Moses & 15,000 \\ \hline D. Saito & 9,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Inventory } & \multirow[b]{2}{*}{ Credit } & \multirow[b]{2}{*}{ Balance } \\ \hline Date & Explanation & Ref. & Debit & & \\ \hline Jan1 & Balance & & 0 & 0 & 18500 \\ \hline Jan.8 & & CP1 & 245 & 0 & 18745 \\ \hline Jan.9 & & G1 & 180 & 0 & 18925 \\ \hline Jan18 & & G1 & 0 & 300 & 18625 \\ \hline Jan.31 & & P1 & 63500 & 0 & 82125 \\ \hline Jan31 & & 51 & 0 & 13020 & 69105 \\ \hline Jan.31 & & CR1 & 0 & 30100 & 39005 \\ \hline Jan31 & & CP1 & 0 & 684 & 38321 \\ \hline Supplies & & & & & No. 126 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 1400 \\ \hline Jan31 & & CP1 & 700 & 0 & 2100 \\ \hline Prepaid Insurance & & & & & No. 130 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 2500 \\ \hline Equipment & & & & & No. 157 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 8700 \\ \hline Accumulated Depr & iation-Equipn & & & & No. 158 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 1500 \\ \hline Notes Payable & & & & & No. 200 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & & G1 & 0 & 16000 & 16000 \\ \hline Accounts Payable & & & & & No. 201 \\ \hline \end{tabular} Salaries and Wages Expense Date Explanation Rent Expense Date Explanation Explanation Ref. Debit Credit Credit No. 627 CP1 Debit Balance Accounts Receivable Subsidiary Ledger R. Beltre Date Balance 51 51 No. 729 Credit Balance CP1 Debit No. 729 J. Revere Date Explanation Ref. 51 G1 CR1 51 Balance B. Santos Date Explanation Ref. Debit Credit Balance Balance Debit Credit Balance CR1 51 R. Moses R. Moses Date Explanation Ref. Debit Credit Balance Balance G1 \begin{tabular}{l} Debit \\ \hline \\ \hline \end{tabular} D. Saito Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) Jan. 3 Sell merchandise on account to B. Corpas $3,100, invoice no. 510 , and to J. Revere $1,500, invoice no. 511. 5 Purchase merchandise from S. Gamel $6,000 and D. Posey $2,500, terms n/30. 7 Receive checks from S. Mahay $3,900 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased \$245. 9 Send checks to S. Meek for $7,000 less 2% cash discount, and to D. Saito for $9,000 less 1% cash discount. 9 Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January 1 to January 10 total \$18,000. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre \$1,800, invoice no. 512, and to S. Mahay \$900, invoice no. 513. 12 Pay rent of $2,000 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Sunland for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $16,000, terms 1/10, n/30; S. Meek $15,000, terms 2/10, n/30; and 5. Gamel $1,100, terms n/30. 17 Pay $500 cash for office supplies. 18 Return $300 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $22,600. Make one journal entry for these sales. 21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due. 21 Receive payment in full from S. Mahay less cash discount. 22 Sell merchandise on account to B. Corpas $2,600, invoice no. 514 , and to R. Beltre $2,300, invoice no. 515 . 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,000, invoice no. 516 , and to J. Revere $6,500, invoice no. 517. 27 Purchase merchandise from D. Saito $14,100, terms 1/10,n/30; D. Posey $3,300, terms n/30; and S. Gamel $5,500, terms n/30. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,600. Make one journal entry for these sales. 31 Pay sales salaries $4,500 and office salaries $3,800. Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) \begin{tabular}{|c|c|} \hline Customer & \begin{tabular}{c} January 1 \\ Opening Balance \end{tabular} \\ \hline R. Beltre & $1,800 \\ \hline B. Santos & 7,800 \\ \hline S. Mahay & 3,900 \\ \hline \end{tabular} Schedule of Accounts Payable (from accounts payable subsidiary ledger) \begin{tabular}{|c|c|} \hline Customer & \begin{tabular}{c} January 1 \\ Opening Balance \end{tabular} \\ \hline S. Meek & $7,000 \\ \hline R. Moses & 15,000 \\ \hline D. Saito & 9,000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|} \hline \multicolumn{4}{|l|}{ Inventory } & \multirow[b]{2}{*}{ Credit } & \multirow[b]{2}{*}{ Balance } \\ \hline Date & Explanation & Ref. & Debit & & \\ \hline Jan1 & Balance & & 0 & 0 & 18500 \\ \hline Jan.8 & & CP1 & 245 & 0 & 18745 \\ \hline Jan.9 & & G1 & 180 & 0 & 18925 \\ \hline Jan18 & & G1 & 0 & 300 & 18625 \\ \hline Jan.31 & & P1 & 63500 & 0 & 82125 \\ \hline Jan31 & & 51 & 0 & 13020 & 69105 \\ \hline Jan.31 & & CR1 & 0 & 30100 & 39005 \\ \hline Jan31 & & CP1 & 0 & 684 & 38321 \\ \hline Supplies & & & & & No. 126 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 1400 \\ \hline Jan31 & & CP1 & 700 & 0 & 2100 \\ \hline Prepaid Insurance & & & & & No. 130 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 2500 \\ \hline Equipment & & & & & No. 157 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 8700 \\ \hline Accumulated Depr & iation-Equipn & & & & No. 158 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & Balance & & 0 & 0 & 1500 \\ \hline Notes Payable & & & & & No. 200 \\ \hline Date & Explanation & Ref. & Debit & Credit & Balance \\ \hline Jan1 & & G1 & 0 & 16000 & 16000 \\ \hline Accounts Payable & & & & & No. 201 \\ \hline \end{tabular} Salaries and Wages Expense Date Explanation Rent Expense Date Explanation Explanation Ref. Debit Credit Credit No. 627 CP1 Debit Balance Accounts Receivable Subsidiary Ledger R. Beltre Date Balance 51 51 No. 729 Credit Balance CP1 Debit No. 729 J. Revere Date Explanation Ref. 51 G1 CR1 51 Balance B. Santos Date Explanation Ref. Debit Credit Balance Balance Debit Credit Balance CR1 51 R. Moses R. Moses Date Explanation Ref. Debit Credit Balance Balance G1 \begin{tabular}{l} Debit \\ \hline \\ \hline \end{tabular} D. Saito Post the journals to the general ledger. (Post entries in the order of Journal entry presented in the previous parts.) Jan. 3 Sell merchandise on account to B. Corpas $3,100, invoice no. 510 , and to J. Revere $1,500, invoice no. 511. 5 Purchase merchandise from S. Gamel $6,000 and D. Posey $2,500, terms n/30. 7 Receive checks from S. Mahay $3,900 and B. Santos $2,000 after discount period has lapsed. 8 Pay freight on merchandise purchased \$245. 9 Send checks to S. Meek for $7,000 less 2% cash discount, and to D. Saito for $9,000 less 1% cash discount. 9 Issue credit of $300 to J. Revere for merchandise returned. 10 Daily cash sales from January 1 to January 10 total \$18,000. Make one journal entry for these sales. 11 Sell merchandise on account to R. Beltre \$1,800, invoice no. 512, and to S. Mahay \$900, invoice no. 513. 12 Pay rent of $2,000 for January. 13 Receive payment in full from B. Corpas and J. Revere less cash discounts. 15 Withdraw $800 cash by M. Sunland for personal use. 15 Post all entries to the subsidiary ledgers. 16 Purchase merchandise from D. Saito $16,000, terms 1/10, n/30; S. Meek $15,000, terms 2/10, n/30; and 5. Gamel $1,100, terms n/30. 17 Pay $500 cash for office supplies. 18 Return $300 of merchandise to S. Meek and receive credit. 20 Daily cash sales from January 11 to January 20 total $22,600. Make one journal entry for these sales. 21 Issue $15,000 note, maturing in 90 days, to R. Moses in payment of balance due. 21 Receive payment in full from S. Mahay less cash discount. 22 Sell merchandise on account to B. Corpas $2,600, invoice no. 514 , and to R. Beltre $2,300, invoice no. 515 . 22 Post all entries to the subsidiary ledgers. 23 Send checks to D. Saito and S. Meek for full payment less cash discounts. 25 Sell merchandise on account to B. Santos $3,000, invoice no. 516 , and to J. Revere $6,500, invoice no. 517. 27 Purchase merchandise from D. Saito $14,100, terms 1/10,n/30; D. Posey $3,300, terms n/30; and S. Gamel $5,500, terms n/30. 27 Post all entries to the subsidiary ledgers. 28 Pay $200 cash for office supplies. 31 Daily cash sales from January 21 to January 31 total $21,600. Make one journal entry for these sales. 31 Pay sales salaries $4,500 and office salaries $3,800