On September 1, the balance of the Accounts Receivable control account in the general ledger of Thone
Question:
On September 1, the balance of the Accounts Receivable control account in the general ledger of Thone Company was $10,960. The customers’ subsidiary ledger contained account balances as follows: Zeyen $1,440, Lahr $2,640, Bohn $2,060, and Cao $4,820. At the end of September, the various journals contained the following information.
Sales journal: Sales to Cao $800; to Zeyen $1,260; to Han $1,330; to Bohn $1,260.
Cash receipts journal: Cash received from Bohn $1,310; from Cao $2,300; from Han $380; from Lahr $1,800; from Zeyen $1,240.
General journal: An allowance is granted to Cao $185.
Instructions
(a) Set up control and subsidiary accounts and enter the beginning balances. Do not construct the journals.
(b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.)
(c) Prepare a list of customers and prove the agreement of the controlling account with the subsidiary ledger at September 30, 2014.
Step by Step Answer:
Financial and managerial accounting
ISBN: 978-1118016114
1st edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso