At the end of May 2020, the sales journal of Value-Mart Goods appeared as follows:

Value-Mart had also recorded the return of merchandise with the following general journal entry:

Required

1. On a sheet of notebook paper, open an accounts receivable subledger that has a T-account for each customer listed in the sales journal. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer?s account.

2. Open a general ledger that has T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Post the sales journal and any portion of the general journal entry that affects these accounts. Calculate the ending balance for each account.

3. Prepare a schedule of the accounts in the accounts receivable subledger and add their balances to show that the total equals the balance in the Accounts Receivable controlling account.

Transcribed Image Text:

Page 4 Sales Journal Cost of Goods Sold Dr. Invoice A/R Dr. Merchandise Sales Cr. Date Account Debited Number PR Inventory Cr. 2020 Brad Smithers 3,200.00 May 6 190 5,760.00 10 2,200.00 Dan Holland 191 3,880.00 1,700.00 17 Sanders Farrell 192 1,000.00 25 Dan Holland 193 680.00 260.00 31 Totals 12,020.00 6,660.00 May Sales Returns and Allowances. Accounts Receivable-Sanders Farrell. Merchandise Inventory. Cost of Goods Sold. Customer returned merchandise. 20 500 500 260 260