Item2

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Item 2

Incredible Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 20X1 follow. The firm sells its merchandise for cash and on open account. During April, Incredible Sounds engaged in the following transactions:

DATE		TRANSACTIONS
20X1
April	1	Sold merchandise for $4,500 to Alto Music Center; issued Invoice 3912 with terms of 1/10, n/30.
	3	Received a check for $1,980 from Music Supply Store in payment of Invoice 2718 of March 25 ($2,000), less cash discount ($20).
	5	Sold merchandise totaling $1,725 in cash to a new customer who has not yet established credit.
	7	Merchandise of $80 sold on April 5 is returned for a cash refund.
	8	Sold merchandise for $6,500 to Music Warehouse; issued Invoice 3913 with terms of 2/10, n/30.
	10	Received payment from Alto Music Center in payment of Invoice 3912, less cash discount.
	15	Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $2,300. The original sale was made on Invoice 3913 on April 8.
	17	Received payment from Music Warehouse for the sale of April 8, less the return on April 15; Music Warehouse deducted the appropriate cash discount from its payment.
	19	Received a check for $2,300 as payment in full from Oldies Sounds for Invoice 3850 dated March 20.
	20	Sold merchandise for $11,200 to Hawk Music Center; issued Invoice 3914 with terms of 2/10, n/30.
	25	Sold merchandise for $10,800 to Modern Sounds; issued Invoice 3915 with terms of 2/10, n/30.
	26	Sold merchandise for $8,600 to Country Tunes; issued Invoice 3916 with terms of 2/10, n/30.
	27	Accepted a return of damaged merchandise from Modern Sounds; issued Credit Memorandum 106 for $500. The original sale was made on Invoice 3915 on April 25.
	29	Received payment from Hawk Music Center for the sale of April 20, less cash discount.
	30	Sold merchandise for $3,200 to Oldies Sounds; issued Invoice 3917 with terms of 2/10, n/30.

Required:

2. Post the above transactions to the appropriate accounts in the general ledger and in the accounts receivable ledger.
3. Prepare a schedule of accounts receivable.

GENERAL LEDGER ACCOUNTS
101	Cash, $27,400 Dr.	451	Sales Returns and Allowances
111	Accounts Receivable, $4,300 Dr.	452	Sales Discounts
401	Sales

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS
	Alto Music Center		Music Supply Store	$	2,000
	Country Tunes		Music Warehouse
	Hawk Music Center		Oldies Sounds	$	2,300
	Modern Sounds

Analyze: What were the total sales on account in April, prior to any returns, allowances, or discounts?