On September 1, the balance of the Accounts Receivable control account in the general ledger of Cullumber Company was $10,390. The customers’ subsidiary ledger contained account balances as follows: Hurley $1,320, Andino $2,360, Fowler $2,080, and Sogard $4,630. At the end of September, the various journals contained the following information. Sales journal: Sales to Sogard $740, to Hurley $1,160, to Giambi $1,370, and to Fowler $1,130. Cash receipts journal: Cash received from Fowler $1,300, from Sogard $2,350, from Giambi $370, from Andino $1,810, and from Hurley $1,320. General journal: An allowance is granted to Sogard $150.
On September 1, the balance of the Accounts Receivable control account in the general ledger of Cullumber Company was $10,390. The customers’ subsidiary ledger contained account balances as follows: Hurley $1,320, Andino $2,360, Fowler $2,080, and Sogard $4,630. At the end of September, the various journals contained the following information. Sales journal: Sales to Sogard $740, to Hurley $1,160, to Giambi $1,370, and to Fowler $1,130. Cash receipts journal: Cash received from Fowler $1,300, from Sogard $2,350, from Giambi $370, from Andino $1,810, and from Hurley $1,320. General journal: An allowance is granted to Sogard $150.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Concept explainers
Bad Debts
At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Question
On September 1, the balance of the Accounts Receivable control account in the general ledger of Cullumber Company was $10,390. The customers’ subsidiary ledger contained account balances as follows: Hurley $1,320, Andino $2,360, Fowler $2,080, and Sogard $4,630. At the end of September, the various journals contained the following information.
|
Sales journal:
|
Sales to Sogard $740, to Hurley $1,160, to Giambi $1,370, and to Fowler $1,130. | |
|
Cash receipts journal:
|
Cash received from Fowler $1,300, from Sogard $2,350, from Giambi $370, from Andino $1,810, and from Hurley $1,320. | |
|
General journal:
|
An allowance is granted to Sogard $150. |
(a)
Set up control and subsidiary accounts and enter the beginning balances.
|
Accounts Receivable
|
|
||||
|---|---|---|---|---|---|
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a credit amount
|
enter a balance amount
|
|
Accounts Receivable Subsidiary Ledger
|
|||||
|
Fowler
|
|
||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a credit amount
|
enter a balance amount
|
|
Sogard
|
|
||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a credit amount
|
enter a balance amount
|
|
Giambi
|
|
||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a debit amount
|
enter a balance amount
|
|
Andino
|
|||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a credit amount
|
enter a balance amount
|
|
Hurley
|
|
||||
|
Date
|
Explanation
|
Ref.
|
Debit
|
Credit
|
Balance
|
|
Sept. 1
|
Balance
|
√
|
enter a debit amount
|
enter a credit amount
|
enter a balance amount
|
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education