Incredible Sounds is a wholesale business that sells musical instruments. Transa
ID: 2466310 • Letter: I
Question
Incredible Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 2016 follow. The firm sells its merchandise for cash and on open account. During April, Incredible Sounds engaged in the following transactions: Instructions: Instructions: Open the general ledger accounts and accounts receivable ledger accounts indicated below. Record the transactions listed above in the general journal. Use page 1 as the page number. Post the entries from the general journal to the appropriate accounts in the general ledger and in the accounts receivable ledger. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable control account with the total of the schedule. General Ledger Accounts 101 Cash ($27,400 Debit) 111 Accounts Receivable ($4,300 Debit) 114 Merchandise Inventory ($35,275 Debit) 401 Sales 421 Sales Returns and Allowances 452 Sales Discounts 501 Cost of Goods Sold Accounts Receivable Ledger Accounts Alto Music Center Country Tunes Hawk Music Center Modern Sounds Music Supply Store ($2,000 Debit) Music Warehouse Oldies Sounds ($2,300 Debit)Explanation / Answer
2) 1-Apr Alto Music Centre Dr 4500 Sales Cr 4500 Cost of goods sold Dr 2700 Merchandise Inventory Cr 2700 3-Apr Cash Dr 1980 Sales Discount Dr 20 Music Supply Cr 2000 5-Apr Cash Dr 1725 Sales Cr 1725 Cost of goods sold Dr 1035 Merchandise Inventory Cr 1035 7-Apr Sales return and allowance Dr 80 Cash Cr 80 Merchandise Inventory Dr 56 Cost of goods sold Cr 56 8-Apr Music Warehouse Dr 6500 Sales Cr 6500 Cost of goods sold Dr 4225 Merchandise Inventory Cr 4225 10-Apr Cash Dr 4455 Sales Discount Dr 45 Alto Music Centre Cr 4500 15-Apr Sales return and allowance Dr 2300 Music Warehouse Cr 2300 Merchandise Inventory Dr 1610 Cost of goods sold Cr 1610 17-Apr Cash Dr 4116 Sales Discount Dr 84 Music Warehouse Cr 4200 19-Apr Cash Dr 2300 Oldies Sounds Cr 2300 20-Apr Hawk Music Centre Dr 11200 Sales Cr 11200 Cost of goods sold Dr 7840 Merchandise Inventory Cr 7840 25-Apr Modern Sounds Dr 10800 Sales Cr 10800 Cost of goods sold Dr 7020 Merchandise Inventory Cr 7020 26-Apr Country Tunes Dr 8600 Sales Cr 8600 Cost of goods sold Dr 4988 Merchandise Inventory Cr 4988 27-Apr Sales return and allowance Dr 500 Modern Sounds Cr 500 Merchandise Inventory Dr 375 Cost of goods sold Cr 375 29-Apr Cash Dr 10976 Sales Discount Dr 224 Hawk Music Centre Cr 11200 30-Apr Oldies Sounds Dr 3200 Sales Cr 3200 Cost of goods sold Dr 2500 Merchandise Inventory Cr 2500 1 & 3) Cash 1-Apr To Bal b/d 27400 7-Apr By Sales return & allowance 80 3-Apr To Music Supply 1980 30-Apr By balance c/d 52872 5-Apr To Sales 1725 10-Apr To Alto Music Centre 4455 17-Apr To Music Warehouse 4116 19-Apr To Oldies sound 2300 29-Apr To Hawk Music Centre 10976 52952 52952 Accounts receivable 1-Apr To Bal b/d 4300 30-Apr By Sales return & allowance 2800 30-Apr To Sales 44800 30-Apr By sales discount 373 30-Apr By Cash 23827 30-Apr By Balance c/d 22100 49100 49100 Merchandise Inventory 1-Apr To Bal b/d 35275 1-Apr By Cost of goods sold 2700 7-Apr To Cost of goods sold 56 5-Apr By Cost of goods sold 1035 15-Apr To Cost of goods sold 1610 8-Apr By Cost of goods sold 4225 27-Apr To Cost of goods sold 375 20-Apr By Cost of goods sold 7840 25-Apr By Cost of goods sold 7020 26-Apr By Cost of goods sold 4988 30-Apr By Cost of goods sold 2500 By bal c/d 7008 37316 37316 Sales 30-Apr To Income Statement 46525 1-Apr By Accounts receivable 4500 5-Apr By Cash 1725 8-Apr By Accounts receivable 6500 20-Apr By Accounts receivable 11200 25-Apr By Accounts receivable 10800 26-Apr By Accounts receivable 8600 30-Apr By Accounts receivable 3200 46525 46525 Sales Return and allowances 7-Apr To Cash 80 30-Apr By Accounts recievable 2880 15-Apr To Accounts receivable 2300 27-Apr To Accounts receivable 500 2880 2880 Sales Discount 3-Apr To Account receivable 20 30-Apr By Accounts receivable 373 10-Apr To Account receivable 45 17-Apr To Account receivable 84 29-Apr To Account receivable 224 373 373 Cost of goods sold 1-Apr To Merchandise inventory 2700 7-Apr By Merchandise inventory 56 5-Apr To Merchandise inventory 1035 15-Apr By Merchandise inventory 1610 8-Apr To Merchandise inventory 4225 27-Apr By Merchandise inventory 375 20-Apr To Merchandise inventory 7840 30-Apr By Income statement 28267 25-Apr To Merchandise inventory 7020 ment 26-Apr To Merchandise inventory 4988 30-Apr To Merchandise inventory 2500 30308 30308 Accounts receivable ledger accounts Alto Music centre 1-Apr To Accounts receivable 4500 10-Apr By Cash 4455 By Sales Discount 45 4500 4500 Country Tunes 26-Apr To Accounts receivable 8600 By Balance c/d 8600 8600 8600 Hawk Music centre 20-Apr To Accounts receivable 11200 29-Apr By Cash 10976 By Sales Discount 224 11200 11200 Modern Sounds 25-Apr To Accounts receivable 10800 27-Apr By sales returns and allowance 500 30-Apr By Balance c/d 10300 10800 10800 Music Supply Store 1-Apr To Balance b/d 2000 3-Apr By Cash 1980 By Sales Discount 20 2000 2000 Music Warehouse 8-Apr To Accounts receivable 6500 15-Apr By Sales return and allowance 2300 17-Apr By Cash 4116 By Sales Discount 84 6500 6500 Oldies Sounds 1-Apr To Balance b/d 2300 19-Apr By Cash 2300 30-Apr To Accounts receivable 3200 30-Apr By Balance c/d 3200 5500 5500 4) Schedule of Accounts receivable Name Dr Cr Alto Music Centre 0 Country Tunes 8600 Hawk Music Centre 0 Modern Sounds 10300 Music Supply store 0 Music Warehouse 0 Oldies Sound 3200 Total of accounts receivable 22100