Max Peney owns Peney's Sneaker Shop. (Balances as of August 1 are provided for the accounts receivable and general ledger accounts as follows: Donovan, $375 Dr.; Littler, $900 Dr.; Pry, $750 Dr.; Zamora, $350 Dr.; Cash, $16,500 Dr.; Accounts Receivable, $2,375 Dr.; Sneaker Rack Equipment, $1,000 Dr.; Max Peney, Capital, $42,000 Cr.; Sales, $2,400 Cr. Be sure to put them in your working papers.) The following transactions occurred in August:

201X

August 1 Max Peney invested an additional $13,500 in the sneaker store. 3 Sold $600 of merchandise on account to B. Donovan, sales ticket no. 70; terms 4/10, n/30.

4 Sold $400 of merchandise on account to Ron Littler, sales ticket no. 71; terms 4/10, n/30.

9 Sold $100 of merchandise on account to Jim Zamora, sales ticket no. 72; terms 4/10, n/30.

10 Received cash from B. Donovan in payment of August 3 transaction, sales ticket no. 70, less discount.

20 Sold $4,000 of merchandise on account to Page Pry, sales ticket no. 73; terms 4/10, n/30.

22 Received cash payment from Ron Littler in payment of August 4 transaction, sales ticket no. 71.

23 Collected cash sales, $3,000.

24 Issued credit memorandum no. 1 to Page Pry for $2,100 of merchandise returned from August 20 sales on account.

26 Received cash from Page Pry in payment of August 20 sales ticket no. 73. (Don't forget about the credit memo and discount.)

28 Collected cash sales, $6,600.

30 Sold sneaker rack equipment for $650 cash. (Beware, sold at cost.)

30 Sold merchandise priced at $4,400 on account to Ron Littler, sales ticket no. 74, terms 4/10, n/30.

31 Issued credit memorandum no. 2 to Ron Littler for $770 of merchandise returned from August 30 transaction, sales ticket no. 74.

Required

1. Journalize the transactions.

2. Record to the accounts receivable subsidiary ledger and post to the general ledger as needed.

3. Prepare a schedule of accounts receivable for the end of August.