Question: Please refer to problem P6-3A. The sales data listed there form the basis for much of this problem. The following cash was received by CIT
Please refer to problem P6-3A. The sales data listed there form the basis for much of this problem. The following cash was received by CIT during August, 2019.
2019 Aug.
3 W. Chan contributed $50,000 and deposited this in the CIT bank account.
11 JIW Enterprises paid Invoice No. 2001, less the credit memo, taking discount.
14 Advanced Technologies in Motion paid Invoice No. 2003, taking discount.
18 Case-5 Electronics paid Invoice No. 2002, taking their special discount.
21 Manfred Communications dropped off a cheque in full payment of Invoice No. 2004, less the credit memo, and taking the discount. Although a day late, the discount was approved by W. Chan.
23 JIW Enterprises paid Invoice No. 2005, taking discount.
26 Advanced Technologies in Motion paid Invoice No. 2006, taking discount.
31 WMJ Sales paid half of Invoice 2007, taking the special cash discount on the amount paid.
Data From Problem P6-3A
2019 Aug.
2 Sold $4,000 (CP) and $5,500 (TC) to JIW Enterprises. Invoice No. 2001. Normal terms.
4 Sold $3,200 (CP), $1,600 (TC). and $2,600 (MP) to Case-5 Electronics. Invoice No. 2002. Special terms.
5 Sold $2,900 (TC) and $1,200 (MP) to Advanced Technologies in Motion. Invoice No. 2003. Normal terms.
6 JIW Enterprises messaged that there was a minor problem with the screens of two of the cell phones they purchased on August 2. Wilson agreed to a credit allowance of $150 and issued credit memorandum No. 101 dated this date. Wilson did not take back the inventory.
10 Sold $3,000 (CP), $4,750 (TC), and $1,700 (MP) to Manfred Communications. Invoice No. 2004. Normal terms.
13 Sold $1,400 (CP), $3,500 (TC), and $850 (MP) to JIW Enterprises. Invoice No. 2005. Normal terms.
17 Sold $930 (CP), $1,400 (TC), and $1,100 (MP) to Advanced Technologies in Motion. Invoice No. 2006. Normal terms.
Aug.
20 The purchasing manager for Manfred Communications dropped by to mention that there was a memory flaw in one of the portable music players sold to them on August 10. Manfred had already replaced the memory component with its own supply, and so an adjustment in price of $75 was agreed to. Issued credit memorandum No. 102 to Manfred Communications this date. No inventory was returned.
22 Sold $4,200 (CP), $3,800 (TC), and $1,300 (MP) to WMJ Sales. Invoice No. 2007. Special terms.
26 Sold $6,200 (TC) to Case-5 Electronics. Invoice No. 2008. Special terms.
28 Sold $2,550 (CP), $4,400 (TC), and $1,780 (MP) to Manfred Communications. Invoice No. 2009. Normal terms.
30 Sold $1,430 (CP), $2,800 (TC), and $1,300 (MP) to Advanced Technologies in Motion. Invoice No. 2010. Normal terms.
Required
a. Enter the above transactions in the cash receipts journal.
b. Record all transactions to the customers’ accounts in the AR subsidiary ledger.
c. Ensure that the cash receipts journal is completed. d. Post all transactions to the relevant GL accounts at month-end. See account numbers below. e. Prepare a schedule of accounts receivable as of Aug. 31, and ensure that the total agrees with GL account number 1300.
The company uses these additional GL account numbers:
Cash............................................1100
Owner’s Equity, W. Chan..........3000
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Date 2019 Cash Dr Aug 3 500 0000 11 91 63 00 14 401 800 18 717 800 21 918750 23 56 3500 26 33 61 40 31 CHANS IMPORTED TECHNOLOGY CASH RECEIPTS JOURNAL Accounts Receivable Cr 935 000 410000 740000 9375... View full answer
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