12th Edition

ISBN: 9780134486444

Author: Tracie L. Miller-Nobles, Brenda L. Mattison, Ella Mae Matsumura

Publisher: PEARSON

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The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…

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Textbook Question

Chapter 7, Problem E7.16E

Using the sales and cash receipts journals
Learning Objective 2
The sales and cash receipts journals of Caverly Office Products include the following entries:

Sales Journal
Date	Invoice No.	Customer Account Debited	Post, Ref.	Accounts Receivable DR Sales revenue CR	Cost Of Goods Sold DR Merchandise Inventory CR
2018
May 7	601	L. Ebert	(	110	63
10	602	T. Ross	(	65	33
10	603	E. Loop	(	95	37
12	604	B. Goebel	(	120	76
May 31		Total		390	209

Cash Receipts Journal
Date	Account Credited	Post, Ref.	Cash DR	Account Receivable CR	Sales Revenue CR	Sales Discount For Forfeited CR	Other accounts CR	Cost Of Goods Sold DR Merchandise Inventory CR
2018
May 16	L. Ebert	(
19	E. Loop	(
24			320		320			250
30	T. Ross	(
May 31	Total

Identify the missing information in the cash receipts journal for those transaction listed. All credit sales are terms n/30. Assume all the accounts are paid in full. Also, total the columns in the cash receipts journal and show that total debits equal total credits.

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Chapter 7, Problem E7.15E

Chapter 7, Problem E7.17E

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Chapter 7 Solutions

Horngren's Accounting (12th Edition)

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