Model Trains Enthusiasts Shops sales and cash receipts journals for the month of April are presented below.
Question:
Model Trains Enthusiasts Shop’s sales and cash receipts journals for the month of April are presented below. The accounts receivable subsidiary ledger is reconciled with the general ledger account each month. On 1 April, the subsidiary ledger had four accounts: A. Tilden — $430; L. Tran — $520; N. Summers — $630; T. Schmidt — $450.
Sales Journal | Cash Receipts Journal | ||||||||
Date | Invoice | Account | Amount | Date | Account | Cash | Accounts Receivable | ||
1/4 6/4 7/4 18/4 27/4 | 1407 1408 1409 1410 1411 | J. Wayne A. Tilden L. Tran N. Summers B. Pham | 340 200 320 180 290 | ||||||
4/4 12/4 24/4 26/4 | A. Tilden L. Tran N. Summers T. Schmidt | 220 420 320 460 | 220 420 320 460 |
Required
A. Establish a T account for each customer’s account in the subsidiary ledger and an Accounts Receivable Control account. Post the amounts to the accounts receivable subsidiary ledger and the general ledger using the information in the journals shown.
B. Prepare a schedule of the accounts in the subsidiary ledger and compare its total to the balance in the control account.
Accounts ReceivableAccounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Step by Step Answer:
Accounting
ISBN: 978-1118608227
9th edition
Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett