Question $2$

The post$-$closing trial balance for Carpets Galore $isas$ follows.

Carpets Galore

Post$-$closing trial balance

$asat31$ December $2022$

Debit Credit

Cash $$83,000$

Accounts receivable $30,000$

Commissions receivable $50,000$

Inventory $90,000$

Equipment $46,000$

Accumulated depreciation $-$ equipment $$3,000$

Accounts payable $$86,000$

$S.$ Centric, capital $$172,900$

Total $$261,900$ $$261,900$

The subsidiary ledgers contain the following information:

Accounts receivable $-R.$ Barton $$5,000,B.$ Cole $$15,000,M.$ Letta $$10,000.$

Accounts payable $-S.$ Field $$20,000,R.$ Dunn $$36,000,D.$ French $$30,000.$

The cost $of$ all inventory sold was $65\%of$ the sales price.

The transactions for January $2023$ are $as$ follows:

Transactions for January $2023$

Jan. $5-$ Sell inventory $toP.$ Rutti $$8,000,$ terms$\frac{2}{7},\frac{n}{30},$ invoice $no.21.$

Jan. $5-$ Purchase inventory from $M.$ Cicco $$5,000,$ terms$\frac{2}{7},\frac{n}{30.}$

Jan. $7-$ Receive $an$ EFT payment from $M.$ Letta $$7,000.$

Jan. $11-$ Pay freight $on$ inventory purchased $$600,$ EFT ref. $no.111.$

Jan. $12-$ Pay rent $of$ $$2,000$ for January, EFT ref. $no.112.$

Jan. $13-$ Receive payment from $P.$ Rutti via EFT amount due, invoice $no.21.$

Jan. $14-$ Issue a credit note $to$ acknowledge receipt $of$ damaged inventory $of$ $$1,400$ returned $byR.$ Barton.

Jan. $15-$ Pay $D.$ French via EFT ref. $no.113$ $$29,700in$ payment $of$ account, discount $$300.$

Jan. $17-$ Purchase inventory from $P.$ Piper $$3,200,$ terms$\frac{2}{7},\frac{n}{30.}$

Jan. $20-$ Pay sales salaries $of$ $$6,500$ EFT ref. $no.114$ and office salaries $$3,000$ EFT ref. $no.115.$

Jan. $22-$ Pay $R.$ Dunn via EFT ref. $no.116$ $$36,000in$ payment $of$ account payable.

Jan. $29-$ Receive $an$ EFT from $M.$ Cicco $in$ full payment $of$ $$1,900.$

Jan. $25-$ Write off $an$ account $toB.$ Cole $$15,400,$ terms$\frac{1}{7},\frac{n}{30},$ invoice $no.22.$

Jan. $26-$ Receive $$80,000of$ the commissions revenue receivable $at31$ December $2022.$

Jan. $30-$ Return inventory $of$ $$1,000toP.$ Piper for credit.

Required

$(a)$ Open general and subsidiary ledger accounts for the following:

Account Number Account Name

$101$ Cash

$112$ Accounts receivable

$115$ Commissions receivable

$120$ Inventory

$157$ Equipment

$158$ Accumulated depreciation $-$ equipment

$201$ Accounts payable

$301S.$ Centric, capital

$401$ Sales

$405$ Commissions revenue

$412$ Sales returns and allowances

$415$ Discount received

$505$ Cost $of$ sales

$506$ Freight inwards

$714$ Discount allowed

$726$ Sales salaries expense

$727$ Office salaries expense

$729$ Rent expense

$750$ Inventory write$-$down expense

$(b)$ Record the January transactions $in$ a sales journal, a purchases journal, a cash receipts journal, a cash payments journal, and a general journal.

$(c)$ Post the appropriate amounts $to$ the general ledger.

$(d)$ Prepare a trial balance $asat31$ January $2023.$