Chapter 7, Problem P7.24APGA

Using the sales, cash receipts, and general journals
Assume Smiling Springs Glass Company uses the perpetual inventory system general ledger of Smiling Springs Glass Company includes the following selected counts, along with their account numbers:

16 Office Supplies 51 Cost of Goods Sold

18 Equipment

Number	Account	Number	Account
11	Cash	19	Land
12	Accounts Receivable	41	Sales Revenue
13	Notes Receivable	42	Sales Discounts
15	Merchandise Inventory	43	Sales Returns and

All credit sales are on Smiling Spring’s standard terms of 2/10, n/30. Sales and cash receipts transactions in July were as follows:

Jul. 2 Sold merchandise inventory on credit to Intelysis, Inc., $1,700. Smiling Spring’s cost of these goods was $200.

3 As an accommodation to a competitor, sold office supplies at cost, $60, receiving cash.

₇ cash sales for the week totaled $2,000 (cost, $1,500).

₉ Sold merchandise inventory on account to A. B Moore, $7,500 (cost, $5,400)

10 Sold land that cost $8,000 for cash of the same amount

11 Sold merchandise inventory on account to Smart Electric, $5,800 (cost, $3,250)

12 Received cash from Intelysis in full settlement of its account receivable from July 2.

14 Cash sales for the week were $2,500 (cost, $1,700).

15 Sold merchandise inventory on credit to the partnership of West & Bob, $3,900 (cost, $2,350).

18 Received merchandise inventory sold on July 9 to A. B. Moore for $300. The goods sh pped were unsatisfactory. These goods cost Smiling Springs $200.

20 Sold merchandise inventory on account to Smart Electric, $650 (cost, $350).

21 Cash sales for the week were $900 (cost, $650).

22 Received $4,000 cash from A. B. Moore in partial settlement of his account receivable. There was no discount.

25 Received cash from West & Bob for its account receivable from July 15.

25 Sola merchandise inventory on account to Oggie Co., $1,590 (cost, $960).

27 Collected $5,600 on a note receivable. There was no interest earned.

28 Cash sales for the week totaled $3,790 (cost, $2,460).

29 Sold merchandise inventory on account to R. O. Bankston, $200 (cost, $120).

30 Received merchandise inventory sold on July 25 to Oggie Co. for $40. The cost of these goods was $10.

31 Received $3,200 cash on account from A. B. Moore.

Requirements

1. Use the appropriate journal to record the preceding transactions in a sales journal (omit the Invoice No. column), a cash receipts journal, and a general journal. Smiling Springs Glass Company records sales returns and allowances in the general journal.

2. Total each column of the sales journal and the cash receipts journal. Show that total debits equal total credits.

3. Show how postings would be made by writing the account numbers and check marks in the appropriate places in the journals.