To assist you in recording these transactions for the month of January, at the end of this problem is the schedule of accounts receivable as of December 31 and an updated chart of accounts with the current balance listed for each account.

Assignment

1. Journalize the transactions.

2. Record in the accounts receivable subsidiary ledger and post to the general ledger as appropriate. A partial subsidiary ledger is included in the working papers that accompany this text.

The following accounts have been added to the chart of accounts: Sales #4010, Sales Returns and Allowances #4020, and Sales Discounts #4030.

3. Prepare a schedule of accounts receivable as of January 31, 201X.

The January transactions are as follows:

Jan. 1 Sold $780 worth of merchandise to Phil's Photography on credit, sales invoice no. 5000; terms 3/10, n/30.

10 Sold $3,600 worth of merchandise on account to Dr. Michael Turiono, sales invoice no. 5001; terms 3/10, n/30.

11 Received $2,800 from All Star Sports, Inc., toward payment of its balance; no discount allowed.

12 Collected $2,800 cash sales.

19 Sold $4,500 worth of merchandise on account to Worldwide Professionals, sales invoice no. 5002; terms 2/10, n/30.

20 Collected balance in full from Dr. Michael Turiono, invoice no. 5001.

29 Issued credit memorandum to Phil's Photography for $460 worth of merchandise returned, invoice no. 5000.

29 Collected full payment from Worldwide Professionals, invoice no. 5002.

Schedule of Accounts Receivable

Smith Computer Center

December 31, 201X

Phil's Photography.........................................................$ 3,775.00

Worldwide Professionals....................................................7,400.00

All Star Sports, Inc. .........................................................4,400.00

Total Amount Due.........................................................$15,575.00

Transcribed Image Text:

Account # Account Name Cash Petty Cash Accounts Receivable Merchandise Inventory Prepaid Rent Supplies Computer Shop Equipment Accumulated Dep., C.S. Equip. Office Equipment Accumulated Dep., Office Equip Accounts Payable Wages Payable Debit Balance Credit Balance $5,861.76 1010 1021 2,000.00 192.00 5,700.00 $ 150.00 3,850.00 1091 2010 FICA-Nedicare Payable FIT Payable SIT Payable FUTA Payable SUTA Payable Feldman, Capital Feldman, Withdrawals Income Summary Service Revenue 17,2017.เเ1) 3010 15.00 21,800.00 4010 Sales Returns and Allowances Sales Discounts Advertising Expense Rent Expense Utilities Expense Phone Expense Supplies Expense Insurance Expense Postage Expense Dep. Exp., C.S. Equipment Dep. Exp, Office Equipment Miscellaneous Expense Wage Expense Payroll Tax Expense Interest Expense Bad Debt Expense Purchases 5010 5110 218.24 5140 6010 Purchases Retums and Allowances Purchases Discounts Freight In