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College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570

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BuyFindarrow_forward

College Accounting (Book Only): A ...

13th Edition
Scott + 1 other
ISBN: 9781337280570
Textbook Problem

R. J. Hinton Company sells electrical supplies on a wholesale basis. The balances of the accounts as of April 1 have been recorded in the general ledger in your Working Papers and CengageNow. The following transactions took place during April of this year:

Apr. 3 Sold merchandise on account to Maxwell Company, invoice no. 822, $652.80.

7 Sold merchandise on account to B. A. Fitzpatrick Company, invoice no. 823, $462.15.

8 Sold merchandise on account to Durham Hardware, invoice no. 824, $205.60.

13 Issued credit memo no. 61 to B. A. Fitzpatrick Company for merchandise returned, $136.50.

15 Sold merchandise on account to Briggs and Campos, invoice no. 825, $831.47.

21 Sold merchandise on account to Pena and Carr, invoice no. 826, $590.34.

24 Issued credit memo no. 62 to Briggs and Campos for merchandise returned, $80.45.

Apr. 26 Sold merchandise on account to O’Neill Company, invoice no. 827, $569.90.

28 Issued credit memo no. 63 to Durham Hardware for damage to merchandise, $52.48.

30 Sold merchandise on account to Durham Hardware, invoice no. 828, $735.50.

Required

  1. 1. Record these sales of merchandise on account in the sales journal. If using Working Papers, use page 39. Record the sales returns and allowances in the general journal. If using Working Papers, use page 74.
  2. 2. Immediately after recording each transaction, post to the accounts receivable ledger.
  3. 3. Post the amounts from the general journal daily. Post the sales journal amount as a total at the end of the month: Accounts Receivable 113, Sales 411, Sales Returns and Allowances 412.
  4. 4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable controlling account with the total of the schedule of accounts receivable.

1.

To determine

Record the transactions in sale of merchandises in sales journal and sales returns and allowances in general journal.

Explanation

Sales Journal: Sales journal is one form of special journal book, which records all the sales transactions that are sold to customers on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.

Record the transactions in sale of merchandises in sales journal:

DateInvoice No.Customer's NamePost Ref.Accounts receivable (Debit)
Sales (Credit)
20--    
April 03822Company M $652.80
April 07823Company BAF $462.15
April 08824Company DH $205.60
April 15825Company BC $831.47
April 21826Company PC $590.34
April 26827Company ON $569.90
April 30828Company DH $735.50
 Total $4,047.76
    (113) (411)

Table (1)

Record the transactions of sales returns and allowances in general journal:

DateAccount title and explanationPost Ref.DebitCredit
20--    
April 13Sales Returns and Allowances412$136.50 
 Accounts Receivable-Company BAF113 $136...

2.

To determine

Post the transactions to accounts receivable ledger.

3.

To determine

Post the amounts from general journal.

4.

To determine

Prepare a schedule of accounts receivable.

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