Journals:
Journals are the books where all the original entries of business transactions are recorded on basis of its occurrence order and date.
Sales Journal:
The journal where all the credit sales of merchandise are recorded is called a Sales Journal.
Cash Receipts Journal:
Cash receipts journal records all type cash receipts of a business organization like cash sales, collections from debtors, loans and borrowings etc.
A subsidiary ledger of accounts receivable shows the amount of money paid and owed by debtors for the transactions made on credit individually.
Schedule of Accounts Receivable:
A schedule of accounts receivable represents the overall amount of money owed by the debtors for credit transactions during a specified period.
To determine:
1. Preparation of sales journal and cash receipts journal. Journalize the transactions that should be recorded in the sales journal and cash receipts journal.
2. Prepare the general ledger accounts and accounts receivable subsidiary ledger accounts.
3. Verify the amounts that should be posted as individual amounts from the journals have been posted. Foot and crossfoot the journals and make the month-end postings.
4. Preparation of
5. Assume that the total for the schedule of accounts receivable does not equal the balance of the controlling account in the general ledger. Describe steps you would take to discover the error.
Want to see the full answer?
Check out a sample textbook solution
Chapter 7 Solutions
Connect 2-Semester Access Card for Fundamental Accounting Principles
- Please don't use AI And give correct answer .arrow_forwardLouisa Pharmaceutical Company is a maker of drugs for high blood pressure and uses a process costing system. The following information pertains to the final department of Goodheart's blockbuster drug called Mintia. Beginning work-in-process (40% completed) 1,025 units Transferred-in 4,900 units Normal spoilage 445 units Abnormal spoilage 245 units Good units transferred out 4,500 units Ending work-in-process (1/3 completed) 735 units Conversion costs in beginning inventory $ 3,250 Current conversion costs $ 7,800 Louisa calculates separate costs of spoilage by computing both normal and abnormal spoiled units. Normal spoilage costs are reallocated to good units and abnormal spoilage costs are charged as a loss. The units of Mintia that are spoiled are the result of defects not discovered before inspection of finished units. Materials are added at the beginning of the process. Using the weighted-average method, answer the following question: What are the…arrow_forwardQuick answerarrow_forward
- Financial accounting questionarrow_forwardOn November 30, Sullivan Enterprises had Accounts Receivable of $145,600. During the month of December, the company received total payments of $175,000 from credit customers. The Accounts Receivable on December 31 was $98,200. What was the number of credit sales during December?arrow_forwardPaterson Manufacturing uses both standards and budgets. For the year, estimated production of Product Z is 620,000 units. The total estimated cost for materials and labor are $1,512,000 and $1,984,000, respectively. Compute the estimates for: (a) a standard cost per unit (b) a budgeted cost for total production (Round standard costs to 2 decimal places, e.g., $1.25.)arrow_forward
AccountingAccountingISBN:9781337272094Author:WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.Publisher:Cengage Learning,
Accounting Information SystemsAccountingISBN:9781337619202Author:Hall, James A.Publisher:Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis...AccountingISBN:9780134475585Author:Srikant M. Datar, Madhav V. RajanPublisher:PEARSON
Intermediate AccountingAccountingISBN:9781259722660Author:J. David Spiceland, Mark W. Nelson, Wayne M ThomasPublisher:McGraw-Hill Education
Financial and Managerial AccountingAccountingISBN:9781259726705Author:John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting PrinciplesPublisher:McGraw-Hill Education