Jr's ledger control account balances at 1 March 2008 were as follows. Dr $340 600 Cr $1 960.

During March 2008, the following transactions took place. Credit sales 295 000, Cash sales 219 750, Sales returns from credit customers 6 480, Receipts from debtors 238 600, Discounts allowed 3 500. Additional information for the month of March 2008

1. The receipts from debtors included a cheque for $3600 in full settlement of a debt of $3800. This was returned by the bank on 28 March marked "insufficient funds". 2 . Eva Little and JR both buy from and sell to each other. At 31 March 2008 Eva owed JR $5000 and JR owed $8600 to Eva. They agreed to offset balances, the net amount being payable by JR on 31 March 2008.

3. It was agreed that a debt of $2300 from Alice Springs was bad and it was written off.

4. The total credit balances in the sales ledger control account at 31 March 2008 were $8340.

REQUIRED (a) Prepare JR's sales ledger control account for the month of March 2008

Answer rating: 100% (QA)

To prepare JRs sales ledger control account for the month of March 2008 we need to record the transactions and adjustments related to sales receipts r... View the full answer