Steller Company had the following trånsactions Jun. 1 Sold merchandise inventory on account to Carter Company, $1,575. 6. Sold merchandise inventory for cash, $550. 12 Received cash from Carter Company in full settlement of its accounts receivable. 20 Sold merchandise inventory on account to Iris Company, $765. 22 Sold merchandise inventory on account to Driver Company, $230. Received cash from Iris Company in partial settlement of its accounts receivable, $300. 28 Requirements 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations.
Steller Company had the following trånsactions Jun. 1 Sold merchandise inventory on account to Carter Company, $1,575. 6. Sold merchandise inventory for cash, $550. 12 Received cash from Carter Company in full settlement of its accounts receivable. 20 Sold merchandise inventory on account to Iris Company, $765. 22 Sold merchandise inventory on account to Driver Company, $230. Received cash from Iris Company in partial settlement of its accounts receivable, $300. 28 Requirements 1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
How do I solve E9-16 requirement 1

Transcribed Image Text:from the customer remittance slips. The credit department lists all cash receipts by
The cash goes to the treasurer for deposit in the bank. The remittance slips go to
• The controller compares the daily deposit slip to the total amount posted to
ing
and write-offs of
off of the accounts receivable.
customer name and amount of cash received
the accounting department for posting to customer accounts.
customer accounts. Both amounts must agree.
Recall the components of internal control. Identify the internal control weakness in
this situation, and propose a way to correct it.
E9-16 Recording credit sales and collections
Steller Company had the following transactions in June:
Jun. 1
Sold merchandise inventory on account to Carter Company, $1,575.
Sold merchandise inventory for cash, $550.
12
Received cash from Carter Company in full settlement of its accounts receivable.
20
Sold merchandise inventory on account to Iris Company, $765.
22
Sold merchandise inventory on account to Driver Company, $230.
Received cash from Iris Company in partial settlement of its accounts receivable,
$300.
28
Requirements
1. Journalize the transactions. Ignore Cost of Goods Sold. Omit explanations.
2. Post the transactions to the general ledger and the accounts receivable subsidiary
ledger. Assume all beginning balances are $0.
3. Verify the ending balance in the control Accounts Receivable equals the sum of the
balances in the subsidiary ledger.
9-17 Journaliz
sactions using the direct write-off method
erform
Cell Phones sold $21,000 of merchandise to
2t. Anthony fell on hard times and on July 15
lc. After r
any
d attempts to collect, Best
Anthony on September
d Anthony's check for
of
receiv
5.
5, 20
orim
ing
VITE
Re
1.
or Bes
ang the direer
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