The following transactions of David's Auto Supply occurred in June. David uses a sales journal to record sales on account. The balances as of June 1 for the accounts receivable subsidiary ledger are Graham Carter $600; J. Sanders, $500; and R. Victor, $800. Other balances on June 1 are Accounts Receivable $1,900 and Sales Taxes Payable $1,900.

201X

June 1. Sold auto parts merchandise to R. Victor on account, $800, invoice no.60, plus 4% sales tax.

5. Sold auto parts merchandise to J. Sanders on account, $400, invoice no. 61, plus 4% sales tax.

8. Sold auto parts merchandise to Graham Carter on account, $17,000, invoice no.62, plus 4% sales tax.

10. Issued credit memorandum no. 12 to R.Victor for $700 for defective auto parts merchandise returned from June 1 transaction. (Be careful to record the reduction in Sales Tax Payable as well.)

12. Sold auto parts merchandise to J.Sanders on account, $1,200, invoice no. 63, plus 4% sales tax.

Required

1. Journalize the transactions in the appropriate journals.

2. Record to the accounts receivable subsidiary ledger and post to the general ledger as appropriate.

3. Prepare a schedule of accounts receivable.