At the end of May 2014, the Sales Journal of Value-Mart Goods appeared as follows:

Value-Mart had also recorded the return of merchandise with the following General Journal entry:

Required
1. On a sheet of notebook paper, open an Accounts Receivable Subledger that has a T-account for each customer listed in the Sales Journal. Post to the customer accounts the entries in the Sales Journal and any portion of the General Journal entry that affects a customer's account.
2. Open a General Ledger that has T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post the Sales Journal and any portion of the General Journal entry that affects these accounts. Calculate the ending balance for each account.
3. Prepare a schedule of the accounts in the Accounts Receivable Subledger and add their balances to show that the total equals the balance in the Accounts Receivable controlling account.

Transcribed Image Text:

Sales Journal Invoice Number PR Page 4 Cost of Goods Sold Dr Merchandise Inventory Cr A/R Dr. Date Account Debited Sales Cr. 2014 5,760.00 3,880.00 1,700.00 May 6 Brad Smithers 10 Dan Holland 17 Sanders Farrell 25 Dan Holland 190 191 192 193 3,200.00 2,200.00 1,000.00 260.00 6,660.00 680.00 3 Totals 12,020.00 May 20 Sales Returns and Allowance 500 Accounts Receivable Sanders Farrell 500 Merchandise Inventory 260 Cost of Goods Sold Customer returned merchandise 260