Question

Mike Patten owns Patten’s Sneaker Shop. (Balances as of May 1 are provided for the accounts receivable and general ledger accounts as follows: Donati $375 Dr.; Lindall $850 Dr.; Pilar $550 Dr.; Zamora $650 Dr.; Cash $15,000 Dr.; Accounts Receivable $2,425 Dr.; sneaker rack equipment $850 Dr.; Mike Patten, Capital $39,000 Cr.; Sales $2,200 Cr. Be sure to put beginning balances in your working papers.) The following transactions occurred in May:
201X
May 1 Mike Patten invested an additional $14,500 in the sneaker store.
3 Sold $900 of merchandise on account to B. Donati, sales ticket no. 60; terms 2/10, n/30.
4 Sold $700 of merchandise on account to Ron Lindall, sales ticket no. 61; terms 2/10, n/30.
9 Sold $400 of merchandise on account to Jim Zamora, sales ticket no. 62; terms 2/10, n/30.
10 Received cash from B. Donati in payment of May 3 transaction, sales ticket no. 60, less discount.
20 Sold $3,000 of merchandise on account to Pilar Pry, sales ticket no. 63; terms 2/10, n/30.
22 Received cash payment from Ron Lindall in payment of May 4 transaction, sales ticket no. 61.
23 Collected cash sales, $2,400.
24 Issued credit memorandum no. 1 to Pilar Pry for $2,200 of merchandise returned from May 20 sales on account.
26 Received cash from Pilar Pry in payment of May 20, sales ticket no. 63. (Don’t forget about the credit memo and discount.)
28 Collected cash sales, $6,800.
30 Sold sneaker rack equipment for $350 cash. (Beware.)
30 Sold merchandise priced at $4,000, on account to Ron Lindall, sales ticket no. 64; terms 2/10, n/30.
31 Issued credit memorandum no. 2 to Ron Lindall for $700 of merchandise returned from May 30 transaction, sales ticket no. 64.

Required
1. Journalize the transactions.
2. Record to the accounts receivable subsidiary ledger and post to the general ledger as needed.
3. Prepare a schedule of accounts receivable for the end of May.



$1.99
Sales1
Views123
Comments0
  • CreatedApril 24, 2014
  • Files Included
Post your question
5000