Cathy Smythe, who trades as Cathy’s Corner, uses the following journals in her business: general, cash receipts, cash payments, sales and purchases. The control account for the accounts receivable in the general ledger at 1 June 2019 (with posting references omitted) is summarised below.

Set out below are the only two subsidiary ledger accounts for receivables affected by general journal entries during June.

Required

(a) State the posting references for the entries on 30 June in the Accounts Receivable Control account.

(b) How could the credit balance in the account of Jones have arisen?

(c) Determine what the total of the schedule of accounts receivable should be on 30 June.

(d) What transaction would have led to the debit in the account of Lyons on 22 June?

(e) Explain the transactions that would have led to the credit entries in the Accounts Receivable Control account on 9, 18 and 26 June.

Transcribed Image Text:

Accounts Receivable Control 2019 2019 1/6 21/6 116380 18/6 7 458 26/6 30/6 132 000 30/6 748 7 458 104236