Question

Assume Brilliant Spring Company uses the perpetual inventory system. The general ledger of Brilliant Springs Company includes the following selected accounts, along with their account numbers:
All credit sales are on Brilliants standard terms of 2/10, n/30. Sales and cash receipts transactions in November were as follows:
Nov. 2 Sold merchandise inventory on credit to Image, Inc., $2,200. Brilliant's cost of these goods was $200.
6 As an accommodation to another company, sold new equipment for its cost of $85, receiving cash for this amount.
6 Cash sales for the week totaled $2,300 (cost, $1,500).
8 Sold merchandise inventory to A. Z. Metz on account, $7,500 (cost, $5,300).
9 Sold land that cost $9,000 for cash of $9,000.
11 Sold merchandise inventory on account to Speedy Electric, $5,800 (cost, $3,250).
11 Received cash from Image in full settlement of its account receivable from November 2. 13 Cash sales for the week were $2,400 (cost, $ 1,400).
15 Sold merchandise inventory on credit to Wilkson and Miller, $3,600 (cost, $2,300).
18 Received merchandise inventory from A. Z. Metz as a sales return, $500. The goods shipped were unsatisfactory. These goods cost Brilliant $100.
19 Sold merchandise inventory to Speedy Electric on account, $850 (cost, $350).
20 Cash sales for the week were $950 (cost, $620).
21 Received $4,400 cash from A. Z. Metz in partial settlement of its account receivable. There was no discount.
22 Received cash from Wilkson and Miller for its account receivable from November 15.
22 Sold merchandise inventory on account to Oliver Co., $1,530 (cost, $980).
25 Collected $5,000 on a note receivable. There was no interest earned.
27 Cash sales for the week totaled $3,740 (cost, $2,460).
27 Sold merchandise inventory on account to R. A. Banks, $210 (cost, $ 160).
28 Received merchandise inventory from Oliver Co. as a sales return, $90. The cost of these goods was $60.
30 Received $2,600 cash on account from A. Z. Metz. There was no discount.
Requirements
1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, and a general journal.
Record sales returns and allowances in the general journal.
2. Total each column of the sales journal and the cash receipts journal. Determine that total debits equal total credits.
3. Show how postings would be made from the journals by writing the account numbers and check marks in the appropriate places in the journals.


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  • CreatedJune 15, 2015
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