Question:
On July 8, 2023, Aster Co. issued debit memorandum No. 1 for $400 to Reel Co. for merchandise returned from invoice No. 312, which originally included GST at 5%. Your task is to journalize, record, and post this transaction as appropriate. Use the same account numbers as found in the text for Art’s Clothing Company (see page below 274 of Chapter 6). The general journal page is page 1.
Data from in page 274 of Chapter 6.
Transcribed Image Text:
Accounts Receivable
Date
2021
May 18
31
31
Inventory
Date
May 31
May 31
Sales
Date
2021
May 31
Explanation
Date
Explanation
2021
May 18
31
31
Sales Returns and Allowances
Date
May 31
May 31
Explanation
Cost of Goods Sold
Date
PARTIAL GENERAL LEDGER
2021
May 1
18
T
PR
Explanation
GJ1
S11
SJ1
GJ1
Date
2021
May 4
PR
SJ1
GJ1
Explanation
Debit
310000
15000
PR
SJ1
Debit
15000
||||
PR
GJ1
SI1
GJ1
Explanation
PR
Debit
SJ1
GJ1
Credit
232500
Explanation
20000 Cr.
Dr.
Dr.
Dr.
Credit
Debit
20000
232500
T
232500 Cr.
Cr.
||||
Debit.
232500
Jane Company
NAME
ADDRESS 1218 Broadview Avenue, Toronto, ON M5X 2A1
Dr.
or
Cr.
PR
SJ1
GJ1
Acct. No. 112
Dr.
or
Cr.
Credit
||||
310000 Cr.
PR
SJ1
Credit
Balance.
20000
Ftalates
290000
57500
72500
Debit
Dr.
or
Credit
ACCOUNTS RECEIVABLE LEDGER
NAME
Ralph Company
ADDRESS 1300 Marine Drive, West Vancouver, BC V6P9B6
Acct. No. 115.
TTT
60000
Dr.
Dr.
15000 Dr.
Balance
232500
4P2000
212500
Debit
Dr.
or
Cr.
Acct. No. 411
250000
Balance
....
310000
Dr.
or
Cr.
Dr.
232500
15000 Dr. 212500
Acct. No. 412
Balance
Credit
Controlling Account.
Note the unusual
balance of $200 (Cr.)
because of the return.
Why? Because the total
of the sales journal is not
posted until the end of
the month.
Note: Inventory typically
has a debit balance. This
posting shows only the above
transactions; it does not show
purchases of inventory made
before this transaction.
20000
252500
237500
11
Acct. No. 502
20000
M
Balance
Credit
Dr.
Balance
60000
40000
Dr.
Balance
250000
Customers owe
Moss money and
thus each account.
has a debit balance