From the following transactions for Maggie Co., when appropriate, journalize, record, post, and prepare a schedule of

Question:

From the following transactions for Maggie Co., when appropriate, journalize, record, post, and prepare a schedule of accounts receivable. Use the same journal headings (all page 1) and chart of accounts that Art’s Clothing used in the text (use Maggie G., Capital). You will have to set up your own accounts receivable subsidiary ledger and partial general ledger as needed. All sales terms are 2/10, n/30.

2020 June

2 Maggie G. invested $6,000 in the business.

3 Sold merchandise on account to Boston Co., invoice No. 218, $800. Cost of inventory was $600.

3 Sold merchandise on account to Gary Co., invoice No. 219, $1,200. Cost of inventory was $900.

6 Cash sale, $300. Cost of inventory was $225.

9 Issued credit memorandum No. 24 to Boston Co. for defective merchandise, $150. Cost of inventory was $112.50.

10 Received cheque from Boston Co. for invoice No. 218 less returns and discount.

16 Cash sale, $500. Cost of inventory was $375.

17 Sold merchandise on account to Boston Co., invoice No. 220, $700. Cost of inventory was $525.

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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