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Question
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131. The Sun Company completed the following sales and cash receipts transactions during the first week of December. The Sun Company uses the perpetual inventory system.
Dec. 1.
| Sold merchandise for $6,700 on credit to the Two Rivers Co., terms 2/10, n/30. |
| Invoice no. 1455. Cost of the merchandise sold is $3,600. |
| Dec. 1 |
| Sold merchandise for $3,400 on credit to the Berlin Co., terms 2/10, n/30. Invoice |
| no. 1456. Cost of the merchandise sold is $1,800. |
| Dec 2 |
| Sold merchandise for $590 for cash to the Ellison Co. Invoice no. 1457. Cost of |
| the merchandise sold is $300. |
| Dec. 3 |
| Borrowed $10,000 from Custer Bank on a long-term note payable. |
| Dec. 3 |
| Sold merchandise for $7,200 on credit to the Amherst Co., terms 2/10, n/30. |
| Invoice no. 1458. Cost of the merchandise sold is $4,000. |
| Dec. 5 |
| Received the amount due from the Two Rivers Co. from the sale on December 1. |
| Dec. 6 |
| Sold merchandise on credit for $950 to the Waupaca Co., terms 2/10, n/30. Invoice |
| no. 1459. Cost of the merchandise is $500. |
| Dec. 6 |
| Received the amount due from the Berlin Co. from the sale on December 1. |
a. Use the sales journal and the cash receipts journal to record these transactions.
b. Prepare a schedule of accounts receivable. There were no account receivables at December 1.
| Cash Receipts Journal | |||||||||
| Date | Account Credited | Explanation | PR | Cash Dr. | Sales Discount Cr. | Accounts Receivable Dr. | Sales Cr. | Other Accounts Cr. | Cost of Goods Sold Dr. Inventory Cr. |
Answer
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