Sales and Collections transactions of Wadia Wholesale Supply during the month of May 2013 are appended below:
Question:
May 1 – Goods costing $6,360 supplied to Abbot Sisters and issued invoice numbered 101 for $10,600.
May 7 – Goods costing $7,370 supplied to Babsons Co. and issued invoice numbered 102 for $11,350.
May 10 – Received a check for $10,388 from Abbot Sisters in payment of invoice no. 101 for 10,600 less a 2% discount.
May 14 – Goods costing $5,070 supplied to Carson Bros. and issued invoice numbered 103 for $7,800.
May 17 - Received a check for $11,123 from Babson Co. in payment of invoice no. 102 for 11,350 less a 2% discount.
May 19 – Goods costing $6,510 supplied to Deli Co. and issued invoice numbered 104 for $9,300.
May 21 – Goods costing $ 10,780 supplied to Abbot Sisters and issued invoice numbered 105 for $15,400.
May 23 - Received a check for $7,644 from Carson Bros. in payment of invoice no. 103 for 7,800 less a 2% discount.
May 24 – Goods costing $15,900 supplied to Deli Co. and issued invoice numbered 106 for $21,210.
May 26- Received a check for $9,114 from Deli Co. in payment of invoice no. 103 for 9,300 less a 2% discount.
May 27 – Goods costing $ 10,200 supplied to Babsons Co. and issued invoice numbered 107 for $14,570.
REQUIRED
i.) Journalize the above transactions assuming Wadia uses perpetual inventory system.
ii.) Post transaction to Accounts Receivable Account only.
iii.) What are the balances due from individual customers?
Expert Answer:
iMay 1 Goods costing 6360 supplied to Abbot Sisters and issued invoice numbered 101 for 10600 Sales Debit Credit Accounts Receivable 10600 Inventory 6360 May 7 Goods costing 7370 supplied to Babsons C... View the full answer
