Prepare a cash receipts journal based on the information given below and post it
ID: 2418283 • Letter: P
Question
Prepare a cash receipts journal based on the information given below and post it to the Accounts Receivable Subsidiary Ledger.
On Nov 17, Ms. Don & Co. received $1,450 from Gains Graze to apply on account. The source document for this transaction is Receipt 30.
Instructions:
1. Prepare a sales journal entry based on the information given above and post it to the Accounts Receivable General Ledger account and to the Accounts Receivable Subsidiary Ledger. (Use November 7 for this transaction date.)
2. Enter the above transaction (Nov 17) into the Cash Receipts Journal and post it to the Accounts Receivable General Ledger account and to the Accounts Receivable Subsidiary Ledger.
3. Prepare a Schedule of Accounts Receivable and check to see that the total agrees with the Accounts Receivable ledger account.
Explanation / Answer
Journal Entry Accounts Receivable (Gains Graze) Date Particulars Debit Credit Dr Cr 7th November Accounts Receivable (Gains Graze) 1450 Date Particulars Amt Date Particulars Amt Sales 1450 (sales journal entry) 7th November To sales 1450 17th November By Cash 1450 17th November Cash 1450 Accounts Receivable (Gains Graze) 1450 (Cash receipts against sale) Cash A/c Dr Cr Date Particulars Amt Date Particulars Amt 17th November To A/R - (Gains Graze) 1450