Question

Mike Pattern owns Pattern’s Sneaker Shop. (Balances as of May 1 are provided for the accounts receivable and general ledger accounts as follows: Donati $325 Dr.; Lindall $800 Dr.; Pry $500 Dr.; Zamora $700 Dr.; Cash $14,000 Dr.; Accounts Receivable $2,325 Dr.; sneaker rack equipment $1,300 Dr.; Mike Pattern, Capital $39,000 Cr.; Sales $2,500 Cr. Be sure to put them in your working papers.) The following transactions occurred in May:
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May 1 Mike Pattern invested an additional $11,000 in the sneaker store.
3 Sold $800 of merchandise on account to B. Donati, sales ticket no. 70; terms 1/10, n/30.
4 Sold $600 of merchandise on account to Ron Lindall, sales ticket no. 71; terms 1/10, n/30.
9 Sold $300 of merchandise on account to Jim Zamora, sales ticket no. 72; terms 1/10, n/30.
10 Received cash from B. Donati in payment of May 3 transaction, sales ticket no. 70, less discount.
20 Sold $2,000 of merchandise on account to Pilar Pry, sales ticket no. 73; terms 1/10, n/30.
22 Received cash payment from Ron Lindall in payment of May 4 transaction, sales ticket no. 71.
23 Collected cash sales, $2,000.
24 Issued credit memorandum no. 1 to Pilar Pry for $1,800 of merchandise returned from May 20 sales on account.
26 Received cash from Pilar Pry in payment of May 20 sales ticket no. 73. (Don’t forget about the credit memo and discount.)
28 Collected cash sales, $7,000.
30 Sold sneaker rack equipment for $150 cash. (Beware.)
30 Sold merchandise priced at $5,000 on account to Ron Lindall, sales ticket no. 74, terms 1/10, n/30.
31 Issued credit memorandum no. 2 to Ron Lindall for $875 of merchandise returned from May 30 transaction, sales ticket no. 74.

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.



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  • CreatedApril 24, 2014
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