Rowett and Sharrad uses sales, cash receipts and general journals in its accounting system. The firm also

Question:

Rowett and Sharrad uses sales, cash receipts and general journals in its accounting system. The firm also maintains an accounts receivable subsidiary ledger, which contained the following accounts on 31 August:



S. White



Date

Explanation

Post Ref

Debit

Credit

Balance



1/8

13/8

Balance


CR5



3 210

4 670

1 460



R. Riding



Date

Explanation

Post Ref

Debit

Credit

Balance



4/8

18/8

23/8


S7

S7

CR5

1800

1500



1320

1800

3300

1 980



J. Bean



Date

Explanation

Post Ref

Debit

Credit

Balance



9/8

21/8


S7

CR5

3 420


1 300

3 420

2 120



S. Lau



Date

Explanation

Post Ref

Debit

Credit

Balance



1/8

12/8

25/8

Balance


CR5

S7



780


1 520

3 450

1930

2710



B. Beast



Date

Explanation

Post Ref

Debit

Credit

Balance



1/8

17/8

31/8

Balance


GJ5

CR6



2 320

1 780

4 100

1 780

 —






Required

A. Prepare an Accounts Receivable Control account after all postings for the month of June have been made with the necessary posting references.

B. Explain how all the amounts which appear in the Accounts Receivable Control account were obtained.

Accounts Receivable
Accounts 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...
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Accounting

ISBN: 978-1118608227

9th edition

Authors: Lew Edwards, John Medlin, Keryn Chalmers, Andreas Hellmann, Claire Beattie, Jodie Maxfield, John Hoggett

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