Question

Assume Smiling Springs Glass Company uses the perpetual inventory system. The general ledger of Smiling Springs Glass Company includes the following selected ac-counts, along with their account numbers:
All credit sales are on Smiling Springs’s standard terms of 2/10, n/30. Sales and cash receipts transactions in July were as follows:
Jul. 2 Sold merchandise inventory on credit to Intelysis, Inc., $1,700. Smiling Springs's cost of these goods was $200.
3 As an accommodation to a competitor, sold office supplies at cost, $60, receiving cash. 7 Cash sales for the week totaled $2,000 (cost, $1,500).
9 Sold merchandise inventory on account to A. B. Moore, $7,500 (cost, $5,400).
10 Sold land that cost $8,000 for cash of the same amount.
11 Sold merchandise inventory on account to Smart Electric, $5,800 (cost, $3,250).
12 Received cash from Intelysis in full settlement of its account receivable from July 2.
14 Cash sales for the week were $2,500 (cost, $ 1,700).
15 Sold merchandise inventory on credit to the partnership of West & Bob, $3,900 (cost, $2,350).
18 Received merchandise inventory sold on July 9 to A. B. Moore for $300. The goods shipped were unsatisfactory. These goods cost Smiling Springs $200.
20 Sold merchandise inventory on account to Smart Electric, $650 (cost, $350).
21 Cash sales for the week were $900 (cost, $650).
22 Received $4,000 cash from A. B. Moore in partial settlement of his account receivable. There was no discount.
25 Received cash from West & Bob for its account receivable from July 15.
25 Sold merchandise inventory on account to Oggie Co., $1,590 (cost, $960).
27 Collected $5,600 on a note receivable. There was no interest earned.
28 Cash sales for the week totaled $3,790 (cost, $2,460).
29 Sold merchandise inventory on account to R. O. Bankston, $200 (cost, $120).
30 Received merchandise inventory sold on July 25 to Oggie Co. for $40. The cost of these goods was $10.
31 Received $3,200 cash on account from A. B. Moore.
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. Smiling Springs Glass Company records sales returns and allowances in the general journal.
2. Total each column of the sales journal and the cash receipts journal. Show that total debits equal total credits.
3. Show how postings would be made 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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