Simmo Shops uses the perpetual inventory system and makes all credit sales on terms of 2/10, n/30. During May, Simmo Shops completed these transactions (figures are GST inclusive unless stated otherwise):

May 1 Owner began Simmo Shops by contributing $10,000 cash.

2 Issued invoice no. 290 for sale on credit to S. D. Cooper, $4 400. Simmo Shops' cost of this inventory was $2 780.

4 Sold inventory for cash, $6 820 (net cost, $3 640).

8 Collected interest revenue of $240. (Ignore GST)

9 Issued invoice no. 291 for sale on credit to Redlands Associates, $12 375 (net cost, $6 600).

12 Received $4 312 cash from S. D. Cooper in full settlement of her account receivable, net of the discount, from the sale of 2 May.

15 Sold inventory on credit to P. E. Freetime, issuing invoice no. 292 for $1 485 (net cost, $820).

17 Issued credit memo to P. E. Freetime for $1 485 for defective goods returned by Freetime. Also accounted for receipt of the inventory at net cost.

18 Issued invoice no. 293 for credit sale to S. D. Cooper, $3 652 (net cost, $1 940).

19 Received $12 127.50 from Redlands in full settlement of its account receivable from 9 May.

24 Sold supplies to an employee for cash of $160, which was Simmo Shops' cost. (ignore GST).

29 Sold goods on credit to Redlands Associates, issuing invoice no. 294 for $3 630 (cost, $2 000).

31 Received cash in full, from S. D. Cooper on credit sale of 18 May. There was no discount.

Requirements:

1. Enter the transactions in a Sales journal, a Cash Receipts journal, and a General journal or Sales Returns journal, as appropriate.
2. Open four-column general ledger accounts using Simmo Shops account numbers that follow.

Cash	111	Sales revenue	411
Accounts receivable	112	Sales discounts	412
Supplies	116	Sales returns and allowances	413
Prepaid insurance	117	Interest revenue	419
Inventory	118	Cost of sales	511
Furniture Accum. Dep Furniture	151 152	Salary expense Electricity and gas expense	531 541
Accounts payable	211	Depreciation Expense	551
Salaries Accrued /Payable GST Clearing Capital	214 240 301	Supplies expense Insurance Expense	561 571

3. Open these accounts in the subsidiary ledgers: Accounts receivable ledger-Redlands Associates, P. E. Freetime and S. D. Cooper.
4. Post daily to the Accounts Receivable ledger. On 31 May post to the general ledger.
5. Total each column of the special journals. Show that total debits equal total credits in each special journal.
6. Balance the total of the customer account balances in the Accounts Receivable ledger against Accounts Receivable in the General ledger.