Caspari Companys chart of accounts includes the following selected accounts. 101 ..........Cash 112 ..........Accounts Receivable 120 ..........Inventory

Question:

Caspari Company’s chart of accounts includes the following selected accounts.

101 ..........Cash

112 ..........Accounts Receivable

120 ..........Inventory

311 ..........Common Stock

401 ..........Sales Revenue

414 ..........Sales Discounts

505 ..........Cost of Goods Sold

On June 1, the accounts receivable ledger of Caspari Company showed the following balances: Detwiler & Son $2,500, Flores Co. $1,900, Glaimo Bros. $1,600 and Loomis Co. $1,500. The June transactions involving the receipt of cash were as follows.

June 1 Stockholders invested $12,000 additional cash in the business, in exchange for common stock.

3 Received check in full from Loomis Co. less 2% cash discount.

6 Received check in full from Flores Co. less 2% cash discount.

7 Made cash sales of merchandise totaling $7,220. The cost of the merchandise sold was $4,800.

9 Received check in full from Detwiler & Son less 2% cash discount.

11 Received cash refund from a supplier for damaged merchandise $320.

15 Made cash sales of merchandise totaling $4,500. The cost of the merchandise sold was $3,000.

20 Received check in full from Glaimo Bros. $1,600.

Instructions

(a) Journalize the transactions above in a six-column cash receipts journal with columns for Cash Dr., Sales Discounts Dr., Accounts Receivable Cr., Sales Revenue Cr., Other Accounts Cr., and Cost of Goods Sold Dr./Inventory Cr. Foot and crossfoot the journal.

(b) Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the June transactions to these accounts.

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...