Chapter 7, Problem 5PSA

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…

Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At the end of each month, Warton posts the end-of-month totals to the general ledger. July 2 Mary Mack $ 9,400 July 8 Eric Horner 11,900 July 10 Troy Wilson 14,200 July 14 Hong Jiang 21,300 July 20 Troy Wilson 12,000 July 29 Mary Mack 8,100   Total credit sales 76,900 Required: Post the amounts to the accounts receivable subsidiary ledger for each of these customers above. Post the end-of-month total to Accounts Receivable controlling T-account and a Sales T-account. Prepare a schedule of accounts receivable and prove (confirm) that its total equals the Accounts Receivable controlling account balance.

The following data were selected from the records of Sykes Company for the year ended December 31, current year. Balances January 1, current year Accounts receivable (various customers) Allowance for doubtful accounts $ 120,000 8,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 2/10, n/30 (assume a unit sales price of $500 in all transactions). Transactions during current year. a. Sold merchandise for cash, $235,000. b. Sold merchandise to R. Smith; invoice price, $11,500. c. Sold merchandise to K. Miller, invoice price, $26,500. d. Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit. e. Sold merchandise to B. Sears; invoice price, $24,000. f. R. Smith paid his account in full within the discount period. g. Collected $98,000 cash from customer sales on credit in prior year, all within the discount periods. h. K. Miller paid the invoice in (c) within the discount…