Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The

Question:

Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firm's cash receipts for February are listed below. The general ledger accounts used to record these transactions appear on shown below

INSTRUCTIONS

1. Open the general ledger accounts and enter the balances as of February 1, 2016.

2. Record the transactions in a cash receipts journal. Use 4 as the page number.

3. Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.

4. Total, prove, and rule the cash receipts journal as of February 29, 2016.

5. Post the column totals from the cash receipts journal to the proper general ledger accounts.

GENERAL LEDGER ACCOUNTS

101 Cash...................... $ 5,060 Dr. ........................... 401 Sales

109 Notes Receivable....... 900 Dr. .................................491 Interest Income

111 Accounts Receivable... 4,125 Dr.............................. 620 Cash Short or Over

129 Supplies.................. 710 Dr.

231 Sales Tax Payable....... 345 Cr.

301 Jason Wilson, Capital... 35,000 Cr.

DATE TRANSACTIONS

Feb. 3 Received $600 from Danielle Pelzel, a credit customer, on account.

5 Received a cash refund of $130 for damaged supplies.

7 Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70.

9 Jason Wilson, the owner, invested an additional $16,000 cash in the business.

12 Received $480 from Kyela Jones, a credit customer, in payment of her account.

14 Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38.

16 Received $550 from Sadie Nelson, a credit customer, to apply toward her account.

19 Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36.

21 Had cash sales of $5,050 plus sales tax of $404 during the third week of February.

25 Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes.

28 Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46.

Analyze: What total accounts receivable were collected in February?

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...