Ridleys Novelties is a wholesaler, selling to retailers on one month’s credit and allowing them 4% cash discount if their remittance is received within a week of sale. The receipts from customers during March 2012 were as follows:

Required: 

Account for the above transactions, showing the prime entry as well as the ledger accounts. Assume that discounts allowed are posted in total at the end of the month.

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Date 4.3 9.3 14.3 17.3 25.3 Gamage plc Customer Robinson Ltd Tomlinson Bros Samuel and Son Patricia and Co. Cheque Received within seven days £25,800 £17,280 of the amount £13,440 Whole amount £43,200 Whole amount £19,500 £16,800 £14,400 of the amount Whole amount