Wyatt Sports’ chart of accounts includes the following selected accounts.

On 1 June the accounts receivable ledger of Wyatt Sports showed the following balances: Block & Son $1750, Field Ltd $950, Green Bros. $800, and Mastin Pty Ltd $500. The June transactions involving the receipt of cash were as follows.

Required

(a) Journalise the transactions above in a six-column cash receipts journal with columns for Cash Dr, Discount Allowed Dr, Accounts Receivable Cr, Sales Cr, Other Accounts Cr, and Cost of Sales Dr/Inventory Cr. Total and cross-foot the journal.

(b) Insert the opening balances in the Accounts Receivable Control and subsidiary accounts, and post the June transactions to these accounts.

(c) Determine whether the control account and subsidiary account balances agree.

Transcribed Image Text:

101 Cash 112 Accounts Receivable 120 Inventory 301 J. Wyatt, Capital 401 505 614 Sales Cost of Sales Discount Allowed