Required:-

1. Record the August transactions that would be in the sales Journal and General Journal ONLY.                                                                             2. Complete the month end postings from the sales Journal and General Journal ONLY.                    

3. Complete the postings to the Accounts Receivable Sub- ledger from the sales journal and General Journal ONLY.  

Transcribed Image Text:

The Bancroft Company uses special journals in their accounting system, Sales Journal, Cash Receipts Journal, Purchases Journal, Cash Disbursements Journal and General Journal. Shown below are the transactions for August 2014. All sales on account have credit terms of 2/10, n/30. Aug 7 Borrowed $1,000 from the bank using a short term Note Payable. Aug 10 Sold merchandise on account to Lois Lane, Invoice No. 1011, $315. The cost of the merchandise was $165. Aug 15 Purchased merchandise from the Daily Planet, terms 1/15, n/60, $4000. Aug 19 Issued Cheque No. 672 to Perry White in payment of his $900 salary. Aug 20 Lois Lane returned $100 of the merchandise from the August 10 sale. The merchandise cost $52 and was returned to inventory. Aug 21 Sold merchandise on account to Clark Kent, Invoice No. 1012, $650. The cost of the merchandise was $340. Aug 24 Received payment from Lois Lane from the purchase of August 10. Aug 29 Issued Cheque No. 673 to Daily Planet in payment of the August 15 purchase. Aug 30 Cash sales for the month of August were $12,650. The cost of the merchandise was $9,500. The Bancroft Company uses special journals in their accounting system, Sales Journal, Cash Receipts Journal, Purchases Journal, Cash Disbursements Journal and General Journal. Shown below are the transactions for August 2014. All sales on account have credit terms of 2/10, n/30. Aug 7 Borrowed $1,000 from the bank using a short term Note Payable. Aug 10 Sold merchandise on account to Lois Lane, Invoice No. 1011, $315. The cost of the merchandise was $165. Aug 15 Purchased merchandise from the Daily Planet, terms 1/15, n/60, $4000. Aug 19 Issued Cheque No. 672 to Perry White in payment of his $900 salary. Aug 20 Lois Lane returned $100 of the merchandise from the August 10 sale. The merchandise cost $52 and was returned to inventory. Aug 21 Sold merchandise on account to Clark Kent, Invoice No. 1012, $650. The cost of the merchandise was $340. Aug 24 Received payment from Lois Lane from the purchase of August 10. Aug 29 Issued Cheque No. 673 to Daily Planet in payment of the August 15 purchase. Aug 30 Cash sales for the month of August were $12,650. The cost of the merchandise was $9,500.

Answer rating: 100% (QA)

Answer 1 Prepare a journal entry Date Account Dr Cr 20140820 Sales Return Allowance 100 To L Lane 10... View the full answer