Bennington Company (buyer) and Sanchez, Inc. (seller), engaged in the following transactions during January 20X1:

Bennington Company

Sanchez, Inc.

INSTRUCTIONS
1. Open the accounts payable ledger account and accounts receivable ledger account indicated below for both Bennington Company and Sanchez, Inc. Enter the balances as of January 1, 20X1.
2. Journalize the transactions above in a general journal for both Bennington Company and Sanchez, Inc. Begin the journals for both companies with page 21.
3. Post the transactions to the appropriate accounts in the general ledger and the accounts payable subsidiary ledger for Bennington Company.
4. Post the transactions to the appropriate accounts in the general ledger and the accounts receivable subsidiary ledger for Sanchez, Inc.

GENERAL LEDGER ACCOUNTS—BENNINGTON COMPANY
201 Accounts Payable, $2,300 Cr.

ACCOUNTS PAYABLE LEDGER ACCOUNT—BENNINGTON COMPANY
Sanchez, Inc., $2,300

GENERAL LEDGER ACCOUNTS—SANCHEZ, INC.
111 Accounts Receivable, $2,300 Dr.

ACCOUNTS RECEIVABLE LEDGER ACCOUNT—SANCHEZ, INC.
Bennington Company, $2,300

Analyze: 

What is the balance of the accounts payable for Sanchez, Inc., in the Bennington Company accounts payable subsidiary ledger? What is the balance of the accounts receivable for Bennington Company in the Sanchez, Inc., accounts receivable subsidiary ledger?

Transcribed Image Text:

DATE 20X1 Jan. 8 10 15 19 30 TRANSACTIONS Issued Check 2101 for $2,254 on account to Sanchez, Inc., in payment of Invoice 1885 dated December 30, 20X0, less cash discount of $46. Purchased merchandise for $1,150 from Sanchez, Inc., Invoice 1920; terms 2/10, n/30. Received Credit Memorandum 320 from Sanchez, Inc., for damaged merchan- dise totaling $300 that was returned; the goods were purchased on Invoice 1920, dated January 10. Paid amount due to Sanchez, Inc., for Invoice 1920 of January 10, less the return of January 15 and less the cash discount, Check 2130. Purchased merchandise for $2,500 from Sanchez, Inc., Invoice 1950; terms 2/10, n/30.