Prepare a cash receipts journal based on the information given below and post it
ID: 2602843 • 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
PART-1)
Sales journal:
Date
Account
Account receivable Debit
Sales Credit
07th Nov
Gains graze
$1,450
$1,450
Accounts Receivable General Ledger account:
Date
Account
Debit
Credit
07th Nov
Accounts receivable
$1,450
Sales
$1,450
17th Nov
Cash
$1,450
Accounts receivable
$1,450
Accounts Receivable Subsidiary Ledger
Date
Ref
Debit
Credit
Balance
07th Nov
$1,450
$1,450
17th Nov
$1,450
$0
PART-2)
Cash Receipt Journal
Date
Doc. No.
Account Name
Post Ref.
Sales Credit
Sales Tax Payable Credit
Account Receivable Credit
Sales Discount Credit
Cash in Bank Debit
17th Nov
30
Gains graze
30
$1,450
$0
$1,450
$0
$1,450
Accounts Receivable General Ledger account:
Date
Account
Debit
Credit
17th Nov
Cash
$1,450
Accounts receivable
$1,450
Accounts receivable subsidiary Ledger
Date
Ref
Debit
Credit
Balance
07th Nov
$1,450
$1,450
17th Nov
$1,450
$0
PART-3)
Accounts receivable subsidiary Ledger
Date
Ref
Debit
Credit
Balance
07th Nov
$1,450
$1,450
17th Nov
$1,450
$0
Date
Account
Account receivable Debit
Sales Credit
07th Nov
Gains graze
$1,450
$1,450