Question:
Royce's Communication Sales Co. began operating in August. Royce's offers no discounts (all terms are net 30 days), and 8% PST and 5% GST is charged on all sales. The following transactions occurred in August:
Required
a. Journalize, record, and post as appropriate.
b. Prepare a schedule of accounts receivable for the end of August.
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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2013 Aug. 1 2 6 7 9 13 Royce Lamoureux invested $32,000 in Royce's Communication Sales Co. from his personal account. From the cash register tapes, cellular cash sales were $5,400 plus taxes. From the cash register tapes, radio cash sales were $8,150 plus taxes. Sold cellular equipment on account to Kelly's Real Estate Co., $4,260, sales invoice No. 1201, plus taxes Sold radio equipment on account to Well's Hotshot Service Co., $3,100, sales invoice No. 1202, plus taxes Issued credit memorandum No. 1 to Kelly's Real Estate Co. or cellular equipment returned, $800. (Be sure to reduce taxes payable.) Well's Hotshot Service Co. paid half the amount owed from sales invoice No. 1202, dated August 9. Sold cellular equipment on account to Mountain Explorations Co., $5,770, sales invoice No. 1203, plus taxes Received proceeds of loan from the Business Development Bank of Canada, $50,000 Sold radio equipment on account to Walkin's Safety Supply Co., $5,820. Sales invoice No. 1204, plus taxes. 16 20 22 Issued credit memorandum No. 2 to Mountain Explorations Co. for $1,420 for equipment returned from sales invoice No. 1203, dated August 20. Remember to include taxes! Received payment of net amount due from Kelly's Real Estate Co. on sales invoice No. 1201, less the credit allowed Cash sales taken from the cash register tape showed: 1. Cellular-$8,400taxes 2. Radio-$7,600 taxes Sold cellular equipment on account to Well's Hotshot Service Co., $5,150 sales invoice, No. 1205, plus taxes Received balance from Well's Hotshot Service Co. for sales invoice No. 1202, dated August 9. Aug. 23 26 27 30 31