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Chapter 1: AB-5SE (page 32)

Review your results from Short Exercise SB-4.

Requirements

1. Total each column of the sales journal.

2. Open the following four-column accounts in the accounts receivable subsidiary ledger: Accounts Receivable—Frank; Accounts Receivable—Jack; Accounts Receivable—Thompson; Accounts Receivable—West. Post the transactions to the accounts receivable subsidiary ledger.

3. Open the following selected four-column accounts in the general ledger: Accounts Receivable (112); Merchandise Inventory (118), Bal. $5,000; Sales Revenue (411); Cost of Goods Sold (511). Post the total of each column to the general ledger.

4. Balance the total of the customer ending balances in the accounts receivable subsidiary ledger against Accounts Receivable in the general ledger.

Short Answer

Expert verified

Total Sales on account: $4,485

Total Cost of goods sold: $3,450

Step by step solution

01

Sales Journal’s Total





Sales Journal

Date

Invoice No.

Customer Account Debited

Post. Ref.

Accounts Receivables Dr

Sales Revenue Cr

Cost of Goods Sold Dr.

Merchandise Inventory Cr.

June 1

101

Frank Jack

$1,220

$980

8

102

Ireland Frank

$2,025

$1,640

13

103

Jake Thompson

$420

$210

28

104

Gabe West

$820

$620

June 30

Total

$4,485

$3,450

02

Accounts Receivables Subsidiary Ledger

Frank Jack

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 1

$1,220

$1,220

Ireland Frank

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 8

$2,025

$2,025

Jake Thompson

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 13

$420

$420

Gabe West

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 28

$820

$820

03

General Ledger 

Accounts Receivables 112

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 30

$4,485

$4,485

Merchandise Inventory 118

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 1

$5,000

June 30

$3,450

$1,550

Sales revenue 411

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 30

$4,485

$4,485

Cost of goods sold 511

Balance

Date

Post. Ref.

Debit

Credit

Debit

Credit

June 30

$3,450

$3,450

04

Accounts Receivables Subsidiary ledger Total

Ledger Name

Amount

Frank Jake

$1,220

Ireland Frank

2,025

Jake Thompson

420

Gabe West

820

Total

$4,485

The total of accounts receivables subsidiary ledger matches with the accounts receivables general ledger.

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