DISCUSSION QUESTIONS. Suggested Responses

Transcription

1 DISCUSSION QUESTIONS Suggested Responses 1. A wholesale business buys goods from manufacturers and sells them to retailers. A wholesaler is sometimes referred to as a middleman. A retail business buys goods either from a manufacturer or a wholesaler and then sells those goods directly to consumers. 2. a. Sales Returns and Allowances debit, contra account b. Merchandise Inventory debit c. Sales credit d. Freight In debit e. Purchases Returns and Allowances credit, contra account f. Sales Tax Payable credit g. Sales Discounts debit, contra account h. Purchases debit i. Purchases Discounts credit, contra account 3. a. A schedule of accounts receivable serves as a verification of the accuracy of the accounts receivable ledger; the schedule s total must equal the balance of the Accounts Receivable (controlling) account in the general ledger. b. A schedule of accounts payable serves as a verification of the accuracy of the accounts payable ledger; the schedule s total must equal the balance of the Accounts Payable (controlling) account in the general ledger. 4. Having an accounts receivable ledger and/or an accounts payable ledger is necessary because including individual accounts in the general ledger would result in an overly long trial balance. For the purposes of extending credit and collecting the amount owed, a business uses an accounts receivable ledger to keep track of how much each individual customer currently owes. Similarly, companies maintain an accounts payable ledger to keep track of what they owe to vendors/suppliers and to make certain that charges and payments are correct. 5. Posting to the accounts receivable ledger and the accounts payable ledger on a daily basis is necessary to keep management and customer service fully informed of the amounts customers owe the company and the amounts the company owes to creditors. 6. A sales return and allowance relates to either a physical return of the goods by a customer to a business or the business s reduction (an allowance) in the original price of the goods to the customer because the goods were defective or damaged. A purchases return and allowance relates to either the company s return of goods to a vendor/supplier or a reduction in the cost (an allowance) of the goods by the vendor/supplier because the goods arrived in damaged condition. 7. FOB destination means that the seller pays all the freight charges on the goods being transported. While the goods are in transit, the seller retains title to the goods. FOB shipping point means that the buyer pays all the freight charges on the goods being transported. In the event that the seller pays for the freight charges in advance, the buyer is responsible for reimbursing the seller. While the goods are in transit, the buyer has title to the goods. 8. The internal control of purchases generally involves the following measures: a. Purchases are made only after proper authorization is given. Purchase requisitions and purchase orders are all prenumbered, so that each form can be accounted for Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

2 b. The receiving department carefully checks all goods upon receipt for count, damages, and description. Later, the report of the receiving department is verified against the purchase order and the purchase invoice. c. The person who authorizes the payment is neither the person doing the ordering nor the person actually writing the check. Payment is authorized only after verifying the purchase invoice data with the receiving report and purchase order. d. The person who actually writes the check has not been involved in any of the foregoing purchasing procedures. 9. a. Post the total to the general ledger as a debit to Accounts Receivable and a credit to Sales, placing S followed by the sales journal page number in the Post. Ref. column. After posting to each of these accounts, record the account number below the total, placing the number for Accounts Receivable in parentheses on the left and the account number for Sales in parentheses on the right. Draw a single line across the amount column above the total. Below the column total, extend double underlines through the Date column, the Post. Ref. column, and the amount column. Write the last day of the month on the line with the total. b. Post the totals to the general ledger as a credit to Accounts Payable and a debit to Purchases and to Freight In, placing P followed by the purchases journal page number in the Post. Ref. column. After posting to each of these accounts, record the account number below the total, placing the numbers for Accounts Payable, Freight In, and Purchases in parentheses. Draw a single line across the amount column above the total. Below the column total, extend double underlines through the Date column, the Post. Ref. column, and the amount columns. Write the last day of the month on the line with the total. 10. a. Post individual amounts to the credit customer accounts in the accounts receivable ledger on a daily basis. In the Post. Ref. column, place an S followed by the sales journal page number. After posting each entry to the accounts receivable ledger, put a check mark in the Post. Ref. column of the sales journal. b. Post the individual amounts to the vendor/supplier accounts in the accounts payable ledger on a daily basis. In the Post. Ref. column, place a P followed by the purchases journal page number. After posting each entry to the accounts payable ledger, put a check mark in the Post. Ref. column of the purchases journal Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 363

3 SOLUTIONS TO EXERCISES Exercise 9-1 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, G. Frank 1, Sales 1, Sold merchandise to 3 4 G. Frank, invoice no b. Accounts Receivable, Gregory 6 7 Productions Sales Sold merchandise on 9 10 account, invoice no c. Sales Returns and Allowances Accounts Receivable, Gregory Productions Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

4 Exercise 9-2 GENERAL JOURNAL PAGE 52 DESCRIPTION June 16 Sales Returns and Allowances Accounts Receivable, F. E. Dixon 113/ Issued credit memo no GENERAL LEDGER Accounts Receivable NO. 113 June 1 Balance 6, J , Sales Returns and Allowances NO. 412 June 1 Balance J F. E. Dixon 416 Fifth Avenue Dallas, TX S RECEIVABLE LEDGER May 31 J June 16 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 365

5 Exercise 9-3 a. Sold merchandise on account, $ plus $67.50 sales tax. b. Customer returned merchandise that had a selling price of $ Credited customer s account for $49.95 plus $3.75 sales tax. Exercise 9-4 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, A. Bauer Sales Sales Tax Payable Sold merchandise to A. Bauer, 4 5 invoice no. D b. Sales Returns and Allowances Sales Tax Payable Accounts Receivable, A. Bauer Issued credit memo no Exercise 9-5 a. Purchased merchandise on account, $1,100; freight prepaid and added to the invoice, $84 (total $1,184). b. Returned $120 of merchandise previously purchased on account. Exercise 9-6 GENERAL JOURNAL PAGE DESCRIPTION 1 a. Purchases Accounts Payable, Brewer, Inc Purchased merchandise from 3 4 Brewer, Inc., invoice no. B2997, 4 5 terms n/ b. Accounts Payable, Brewer, Inc Purchases Returns and Allowances Credit memo no. 96 for return 9 10 of merchandise Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

6 Exercise 9-7 GENERAL JOURNAL PAGE 92 DESCRIPTION July 14 Accounts Payable, Jensen and Silva 212/ Purchases Returns and Allowances Credit memo no. 942 for return 4 5 of merchandise Accounts Payable GENERAL LEDGER NO. 212 July 1 Balance 2, J , Purchases Returns and Allowances NO. 512 July 1 Balance J Jensen and Silva 542 Roselle Blvd. Chicago, IL S PAYABLE LEDGER June 13 J July 14 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 367

7 Exercise 9-8 Ford Education Outfitters DESCRIPTION GENERAL JOURNAL PAGE 1 a. Purchases 1, Accounts Payable, Romero 2 3 Textbooks, Inc. 1, Purchased merchandise from 4 5 Romero Textbooks, Inc., 5 6 invoice no , terms n/ b. Accounts Payable, Romero 8 9 Textbooks, Inc Purchases Returns and Allowances Credit memo no. 513A for return of merchandise Romero Textbooks, Inc. GENERAL JOURNAL PAGE DESCRIPTION 1 a. Accounts Receivable, Ford Education 1 2 Outfitters 1, Sales 1, Sold merchandise to Ford 4 5 Education Outfitters, 5 6 invoice no Delivery Expense Cash b. Sales Returns and Allowances Accounts Receivable, Ford Education Outfitters Issued credit memo no. 513A Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

8 Exercise 9-9 Chang Electronics GENERAL JOURNAL PAGE DESCRIPTION Nov. 6 Sales Returns and Allowances Accounts Receivable, The 3 4 Merchandise Market Issued credit memo no The Merchandise Market GENERAL JOURNAL PAGE DESCRIPTION Nov. 6 Accounts Payable, Chang Electronics Purchases Returns and 3 4 Allowances Credit memo no. 121 for return 5 6 of merchandise Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 369

9 Exercise 9-10 SALES JOURNAL PAGE 24 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR Mar Osbourne, Inc Ortiz Company Bailey Corporation 2, Shannon Corporation 1, Total 5, (113) (411) GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance 31 S24 5, , , Sales NO. 411 Mar. 1 Balance 3, S24 5, , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

10 Exercise 9-11 PURCHASES JOURNAL 13 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES May 3 Owens Company J34Y9 5/1 n/ Lionel's Lawn & Landscaping R7740 5/9 2/10, n/ Wright's Farm Supplies 478 5/13 n/ Gutierrez Corporation /22 n/ Totals 1, , (212) (514) (511) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 371

11 Exercise 9-11 (concluded) Accounts Payable GENERAL LEDGER NO. 212 May 1 Balance 3, P13 1, , Purchases NO. 511 May 1 Balance 4, P13 1, , Freight In NO. 514 May 1 Balance P Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

12 Exercise 9-12 SALES JOURNAL PAGE 18 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR Oct Anderson Company R. T. Holcomb 1, Gray and Malo 1, Mercer Mobil 3, J. L. Anthony 2, C. A. Goldschmidt 1, F. A. Baumann 2, Total 13, (113) (411) PURCHASES JOURNAL PAGE 10 SUPPLIER'S INV. INV. NO. TERMS S PAYABLE FREIGHT IN PURCHASES Oct. 2 Colter, Inc /31 2/10, n/ Thomas and Son 982 8/2 n/ Archer Mfg. Co /3 2/10, n/ Spence Products Co. B643 8/6 1/10, n/ L. C. Walter /17 n/ Delaney and Cox /23 2/10, n/ Colter, Inc /25 2/10, n/ Totals 3, , (212) (514) (511) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 373

13 Exercise 9-12 (continued) S RECEIVABLE LEDGER Anderson Company J. L. Anthony F. A. Baumann , , C. A. Goldschmidt Gray and Malo R. T. Holcomb Mercer Mobil , , , , GENERAL LEDGER Accounts Receivable 113 Accounts Payable 212 Sales , , , Purchases , Freight In S PAYABLE LEDGER Archer Mfg. Co. Colter, Inc. Delaney and Cox Bal. 1, Spence Products Co. Thomas and Son L. C. Walter Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

14 Exercise 9-12 (concluded) Kelley Company Schedule of Accounts Receivable October 31, Anderson Company J. L. Anthony F. A. Baumann C. A. Goldschmidt Gray and Malo $ , , , , R. T. Holcomb Mercer Mobil 1, , Total Accounts Receivable $13, Kelley Company Schedule of Accounts Payable October 31, Archer Manufacturing Co. Colter, Inc. Delaney and Cox Spence Products Co. Thomas and Son L. C. Walter Total Accounts Payable $ , $3, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 375

15 Problem 9-1A DESCRIPTION GENERAL JOURNAL PAGE Mar. 4 Accounts Receivable, C. Morales 113/ Sales Sales Tax Payable Sold merchandise to C. Morales, 5 6 sales slip no Accounts Receivable, R. Dixon 113/ Sales Sales Tax Payable Sold merchandise to R. Dixon, sales slip no Accounts Receivable, B. Cox 113/ Sales Sales Tax Payable Sold merchandise to B. Cox, sales slip no Accounts Receivable, All-Star Legion 113/ Sales Sales Tax Payable Sold merchandise to All-Star Legion, sales slip no Accounts Receivable, Tucker Funeral Home 113/ Sales Sales Tax Payable Sold merchandise to Tucker Funeral Home, sales slip no Sales Returns and Allowances Sales Tax Payable Accounts Receivable, Tucker Funeral Home 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

16 Problem 9-1A (continued) GENERAL JOURNAL PAGE 58 DESCRIPTION Mar. 23 Accounts Receivable, Price Savings 2 3 and Loan Association 113/ Sales Sales Tax Payable Sold merchandise to Price 6 7 Savings and Loan Association, 7 8 sales slip no Sales Returns and Allowances Sales Tax Payable Accounts Receivable, Price Savings and Loan Association 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 377

17 Problem 9-1A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance J J J J J J J J Sales Tax Payable NO. 214 Mar. 1 Balance J J J J J J J J Sales NO. 411 Mar. 4 J J J J J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

18 Problem 9-1A (continued) Sales Returns and Allowances NO. 412 Mar. 21 J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 379

19 Problem 9-1A (continued) All-Star Legion S RECEIVABLE LEDGER Mar. 1 Balance J B. Cox Mar. 12 J R. Dixon Mar. 6 J C. Morales Mar. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

20 Problem 9-1A (concluded) Price Savings and Loan Association Mar. 1 Balance J J Tucker Funeral Home Mar. 18 J J Bell Florists Schedule of Accounts Receivable March 31, All-Star Legion B. Cox R. Dixon C. Morales Price Savings and Loan Association Tucker Funeral Home Total Accounts Receivable $ $ Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 381

21 Problem 9-2A DESCRIPTION GENERAL JOURNAL PAGE Apr. 2 Purchases Accounts Payable, Blackburn Company 212/ Purchased merchandise from 4 5 Blackburn Company, invoice no R48, invoice dated 4/1, terms 6 7 n/ Purchases Freight In Accounts Payable, Herrera Company 212/ Purchased merchandise from Herrera Company, invoice no , invoice dated 4/3, terms /10, n/ Purchases Accounts Payable, Barrett, Inc. 212/ Purchased merchandise from Barrett, Inc., invoice no. 1845R, invoice dated 4/5, terms 1/10, n/ Purchases 511 1, Freight In Accounts Payable, Faulkner Company 212/ 1, Purchased merchandise from Faulkner Company, invoice no , invoice dated 4/7, terms /10, n/ Accounts Payable, Faulkner Company 212/ Purchases Returns and Allowances Credit memo no. 415 for return of merchandise Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

22 Problem 9-2A (continued) DESCRIPTION GENERAL JOURNAL PAGE Apr. 23 Purchases 511 1, Accounts Payable, Rhodes 3 4 Manufacturing 212/ 1, Purchased merchandise from 5 6 Rhodes Manufacturing, invoice 6 7 no. 246J, invoice dated 4/21, 7 8 terms net Purchases Accounts Payable, Solomon Products Company 212/ Purchased merchandise from Solomon Products Company, invoice no. 2675, invoice dated /25, terms net Accounts Payable, Solomon Products Company 212/ Purchases Returns and Allowances Credit memo no. 861 for return of merchandise Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 383

23 Problem 9-2A (continued) GENERAL LEDGER Accounts Payable NO. 212 Apr. 1 Balance 3, J , J , J , J115 1, , J , J116 1, , J , J , Purchases NO. 511 Apr. 1 Balance J J , J , J115 1, , J116 1, , J , Purchases Returns and Allowances NO. 512 Apr. 1 Balance J J Freight In NO. 514 Apr. 1 Balance J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

24 Problem 9-2A (continued) Barrett, Inc. S PAYABLE LEDGER Apr. 1 Balance J Blackburn Company Apr. 1 Balance J Faulkner Company Apr. 1 Balance J115 1, , J , Herrera Company Apr. 5 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 385

25 Problem 9-2A (concluded) Rhodes Manufacturing Apr. 1 Balance J116 1, , Solomon Products Company Apr. 1 Balance 1, J , J , Berry's Pet Store Schedule of Accounts Payable April 30, Barrett, Inc. Blackburn Company Faulkner Company Herrera Company Rhodes Manufacturing Solomon Products Company Total Accounts Payable $ , , , $7, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

26 Problem 9-3A GENERAL JOURNAL PAGE 25 DESCRIPTION Jan. 3 Purchases Freight In Accounts Payable, Madden, Inc. 212/ Purchased merchandise from 5 6 Madden, Inc., invoice no. 3487, 6 7 invoice dated 1/1, terms 2/10, n/ Purchases Accounts Payable, Calhoun Candles, Inc. 212/ Purchased merchandise from Calhoun Candles, Inc., invoice no , invoice dated 1/1, terms net Accounts Receivable, R. Kielman 113/ Sales Sales Tax Payable Sold merchandise to R. Kielman, sales slip no Accounts Payable, Calhoun Candles, Inc. 212/ Purchases Returns and Allowances Credit memo no for return of merchandise Purchases Accounts Payable, Whitney and Waters 212/ Purchased merchandise from Whitney and Waters, invoice no A875, invoice dated 1/18, terms /15, n/ Accounts Receivable, A. Benner 113/ Sales Sales Tax Payable Sold merchandise to A. Benner, sales slip no Sales Returns and Allowances Sales Tax Payable Accounts Receivable, A. Benner 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 387

27 Problem 9-3A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Jan. 1 Balance J J J Accounts Payable NO. 212 Jan. 1 Balance J , J , J , J , Sales Tax Payable NO. 214 Jan. 1 Balance J J J Sales NO. 411 Jan. 12 J J Sales Returns and Allowances NO. 412 Jan. 27 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

28 Problem 9-3A (continued) Purchases NO. 511 Jan. 3 J J , J , Purchases Returns and Allowances NO. 512 Jan. 13 J Freight In NO. 514 Jan. 3 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 389

29 Problem 9-3A (continued) A. Benner S RECEIVABLE LEDGER Jan. 1 Balance J J R. Kielman Jan. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

30 Problem 9-3A (continued) S PAYABLE LEDGER Calhoun Candles, Inc. Jan. 1 Balance J J Madden, Inc. Jan. 1 Balance J , Whitney and Waters Jan. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 391

31 Problem 9-3A (concluded) Shirley's Beauty Store Schedule of Accounts Receivable January 31, A. Benner R. Kielman Total Accounts Receivable $ $ Shirley's Beauty Store Schedule of Accounts Payable January 31, Calhoun Candles, Inc. Madden, Inc. Whitney and Waters Total Accounts Payable $ , $2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

32 Problem 9-4A SALES JOURNAL PAGE 39 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR Apr Myers Company L. R. Foster Company Diaz Hardware Brooks and Bennett Powell and Reyes Ortiz Company Diaz Hardware Total 4, (113) (411) GENERAL JOURNAL PAGE 74 DESCRIPTION Apr. 6 Sales Returns and Allowances Accounts Receivable, 3 4 Myers Company 113/ Issued credit memo no Sales Returns and Allowances Accounts Receivable, 8 9 Brooks and Bennett 113/ Issued credit memo no Sales Returns and Allowances Accounts Receivable, Diaz Hardware 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 393

33 Problem 9-4A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1, J , J , J S39 4, , Sales NO. 411 Apr. 1 Balance 11, S39 4, , Sales Returns and Allowances NO. 412 Apr. 1 Balance J J J Brooks and Bennett S RECEIVABLE LEDGER Apr. 1 Balance S , J , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

34 Problem 9-4A (continued) Diaz Hardware Apr. 10 S S , J , L. R. Foster Company Apr. 5 S Myers Company Apr. 1 Balance S J Ortiz Company Apr. 24 S Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 395

35 Problem 9-4A (concluded) Powell and Reyes Apr. 17 S Gomez Company Schedule of Accounts Receivable April 30, Brooks and Bennett Diaz Hardware L. R. Foster Company Myers Company Ortiz Company Powell and Reyes Total Accounts Receivable $1, , $5, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

36 Problem 9-5A PURCHASES JOURNAL PAGE 81 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES Jan. 2 Snyder and Jordan 268J 1/2 net 60 1, , Simpson Company /2 2/10, n/30 2, , Tran, Inc. 452AD 1/6 1/10, n/ Ukele Company D7742 1/7 2/10, n/30 3, , Fernandez Products Company /13 net Snyder and Jordan 392J 1/22 net 60 2, , Fernandez Products Company /27 net Porter Company 664CC 1/27 2/10, n/ Totals 12, , (212) (514) (511) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 397

37 Problem 9-5A (continued) Accounts Payable GENERAL LEDGER NO. 212 Jan. 1 Balance P81 12, , Purchases NO. 511 Jan. 31 P81 11, , Freight In NO. 514 Jan. 31 P Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

38 Problem 9-5A (continued) S PAYABLE LEDGER Fernandez Products Company Jan. 14 P P , Porter Company Jan. 1 Balance P Simpson Company Jan. 1 Balance P81 2, , Snyder and Jordan Jan. 2 P81 1, , P81 2, , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 399

39 Problem 9-5A (concluded) Tran, Inc. Jan. 1 Balance P Ukele Company Jan. 10 P81 3, , Patterson Appliance Schedule of Accounts Payable January 31, Fernandez Products Company Porter Company Simpson Company Snyder and Jordan Tran, Inc. Ukele Company Total Accounts Payable $ 1, , , , $12, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

40 Problem 9-6A SALES JOURNAL PAGE 24 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR Apr Shaw Company 1, Peterson and Black C. N. Hunt 1, Sampson and McDonald 2, Total 6, (113) (411) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 401

41 Problem 9-6A (continued) PURCHASES JOURNAL PAGE 18 SUPPLIER'S INV. NO. INV. TERMS S PAYABLE FREIGHT IN PURCHASES Apr. 4 Payne Company /2 1/10, n/ Vix Company L8552 4/11 2/10, n/30 2, , M. R. Palmer, Inc /23 2/10, n/30 1, , Totals 4, , (212) (514) (511) Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

42 Problem 9-6A (continued) DESCRIPTION GENERAL JOURNAL PAGE Apr. 15 Accounts Payable, Knight and Co. 212/ Purchases Returns and Allowances Credit memo no. 79 for return 4 5 of merchandise Sales Returns and Allowances Accounts Receivable, Peterson 8 9 and Black 113/ Issued credit memo no Office Supplies Expense Accounts Payable, Thornton Stationery Company 212/ Invoice no. S336, invoice dated /29, terms n/ Sales Returns and Allowances Accounts Receivable, Sampson and McDonald 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 403

43 Problem 9-6A (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1, J , J , S24 6, , Accounts Payable NO. 212 Apr. 1 Balance J J P18 4, , Sales NO. 411 Apr. 1 Balance 11, S24 6, , Sales Returns and Allowances NO. 412 Apr. 1 Balance J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

44 Problem 9-6A (continued) Purchases NO. 511 Apr. 1 Balance 9, P18 4, , Purchases Returns and Allowances NO. 512 Apr. 1 Balance J Freight In NO. 514 Apr. 1 Balance P Office Supplies Expense NO. 613 Apr. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 405

45 Problem 9-6A (continued) C. N. Hunt S RECEIVABLE LEDGER Apr. 17 S24 1, , Peterson and Black Apr. 1 Balance S , J , Sampson and McDonald Apr. 1 Balance S24 2, , J , Shaw Company Apr. 2 S24 1, , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

46 Problem 9-6A (continued) Knight and Company S PAYABLE LEDGER Apr. 1 Balance J M. R. Palmer, Inc. Apr. 1 Balance P18 1, , Payne Company Apr. 4 P Thornton Stationery Company Apr. 29 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 407

47 Problem 9-6A (concluded) Vix Company Apr. 12 P18 2, , Reynolds Company Schedule of Accounts Receivable April 30, C. N. Hunt Peterson and Black Sampson and McDonald Shaw Company Total Accounts Receivable $1,015 1,200 3,422 1,746 $7,383 Reynolds Company Schedule of Accounts Payable April 30, Knight and Company M. R. Palmer, Inc. Payne Company Thornton Stationery Company Vix Company Total Accounts Payable $ 142 1, ,531 $5, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

48 Problem 9-1B GENERAL JOURNAL PAGE 57 DESCRIPTION Mar. 4 Accounts Receivable, R. Duarte 113/ Sales Sales Tax Payable Sold merchandise to R. Duarte, 5 6 sales slip no Accounts Receivable, C. Meadows 113/ Sales Sales Tax Payable Sold merchandise to C Meadows, sales slip no Accounts Receivable, Anthony Realty 113/ Sales Sales Tax Payable Sold merchandise to Anthony Realty, sales slip no Accounts Receivable, Travis Dress Shop 113/ Sales Sales Tax Payable Sold merchandise to Travis Dress Shop, sales slip no Sales Returns and Allowances Sales Tax Payable Accounts Receivable, Travis Dress Shop 113/ Issued credit memo no Accounts Receivable, Porter Computers 113/ Sales Sales Tax Payable Sold merchandise to Porter Computers, sales slip no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 409

49 Problem 9-1B (continued) GENERAL JOURNAL PAGE 58 DESCRIPTION Mar. 22 Sales Returns and Allowances Sales Tax Payable Accounts Receivable, Porter 4 5 Computers 113/ Issued credit memo no Accounts Receivable, B. Crosby 113/ Sales Sales Tax Payable Sold merchandise to B. Crosby, sales slip no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

50 Problem 9-1B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Mar. 1 Balance J J J J J J J J Sales Tax Payable NO. 214 Mar. 1 Balance J J J J J J J J Sales NO. 411 Mar. 4 J J J J J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 411

51 Problem 9-1B (continued) Sales Returns and Allowances NO. 412 Mar. 20 J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

52 Problem 9-1B (continued) Anthony Realty S RECEIVABLE LEDGER Mar. 1 Balance J B. Crosby Mar. 27 J R. Duarte Mar. 4 J C. Meadows Mar. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 413

53 Problem 9-1B (concluded) Porter Computers Mar. 1 Balance J J Travis Dress Shop Mar. 17 J J Abbott Florists Schedule of Accounts Receivable March 31, Anthony Realty B. Crosby R. Duarte C. Meadows Porter Computers Travis Dress Shop Total Accounts Receivable $ $ Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

54 Problem 9-2B GENERAL JOURNAL PAGE 95 DESCRIPTION Oct. 3 Purchases Freight In Accounts Payable, Barrera Company 212/ 1, Purchased merchandise from 5 6 Barrera Company, invoice no , invoice dated 10/2, terms 7 8 n/ Purchases Accounts Payable, Hickman Company 212/ Purchased merchandise from Hickman Company, invoice no JYX, invoice dated 10/2, terms /10, n/ Purchases Accounts Payable, Baldwin, Inc. 212/ Purchased merchandise from Baldwin, Inc., invoice no. 4183, invoice dated 10/6, terms 1/10, n/ Accounts Payable, Baldwin, Inc. 212/ Purchases Returns and Allowances Credit memo no. 123 for return of merchandise Purchases 511 2, Freight In Accounts Payable, Douglas, Inc. 212/ 2, Purchased merchandise from Douglas, Inc., invoice no. X431, invoice dated 10/12, terms 2/10, n/ Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 415

55 Problem 9-2B (continued) DESCRIPTION GENERAL JOURNAL PAGE Oct. 15 Purchases Accounts Payable, Krause, Inc. 212/ Purchased merchandise from 4 5 Krause, Inc., invoice no. A499, 5 6 invoice dated 10/11, terms net Purchases 511 2, Accounts Payable, Villa 9 10 Manufacturing 212/ 2, Purchased merchandise from Villa Manufacturing, invoice no , invoice dated 10/21, terms net Accounts Payable, Villa Manufacturing 212/ Purchases Returns and Allowances Credit memo no. 452 for return of merchandise Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

56 Problem 9-2B (continued) GENERAL LEDGER Accounts Payable NO. 212 Oct. 1 Balance 2, J95 1, , J , J , J , J95 2, , J , J96 2, , J , Purchases NO. 511 Oct. 1 Balance 2, J , J , J , J95 2, , J , J96 2, , Purchases Returns and Allowances NO. 512 Oct. 1 Balance J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 417

57 Problem 9-2B (continued) Freight In NO. 514 Oct. 1 Balance J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

58 Problem 9-2B (continued) Baldwin, Inc. S PAYABLE LEDGER Oct. 1 Balance J J Barrera Company Oct. 1 Balance J95 1, , Douglas, Inc. Oct. 1 Balance J95 2, , Hickman Company Oct. 4 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 419

59 Problem 9-2B (concluded) Krause, Inc. Oct. 1 Balance J Villa Manufacturing Oct. 1 Balance J96 2, , J , Lowery's Pet Depot Schedule of Accounts Payable October 31, Baldwin, Inc. Barrera Company Douglas, Inc. Hickman Company Krause, Inc. Villa Manufacturing Total Accounts Payable $ , , , $8, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

60 Problem 9-3B GENERAL JOURNAL PAGE 17 DESCRIPTION Jan. 2 Purchases Freight In Accounts Payable, Mejia, Inc. 212/ Purchased merchandise from 5 6 Mejia, Inc., invoice no. 4521, 6 7 invoice dated 1/1, terms 2/10, 7 8 n/ Purchases 511 1, Accounts Payable, Braun, Inc. 212/ 1, Purchased merchandise from Braun, Inc., invoice no. 37A, invoice dated 1/3, terms 2/10, n/ Accounts Receivable, J. Herbert 113/ Sales Sales Tax Payable Sold merchandise to J. Herbert, sales slip no Accounts Payable, Braun, Inc. 212/ Purchases Returns and Allowances Credit memo no. 455 for return of merchandise Purchases Accounts Payable, Vargas, Inc. 212/ Purchased merchandise from Vargas, Inc., invoice no. 910, invoice dated 1/14, terms net Accounts Receivable, T. Cantrell 113/ Sales Sales Tax Payable Sold merchandise to T. Cantrell, sales slip no Sales Returns and Allowances Sales Tax Payable Accounts Receivable, T. Cantrell 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 421

61 Problem 9-3B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Jan. 1 Balance J J J Accounts Payable NO. 212 Jan. 1 Balance J , J17 1, , J , J , Sales Tax Payable NO. 214 Jan. 1 Balance J J J Sales 411 NO. Jan. 8 J J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

62 Problem 9-3B (continued) Sales Returns and Allowances NO. 412 Jan. 26 J Purchases NO. 511 Jan. 2 J J17 1, , J , Purchases Returns and Allowances NO. 512 Jan. 11 J Freight In NO. 514 Jan. 2 J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 423

63 Problem 9-3B (continued) T. Cantrell S RECEIVABLE LEDGER Jan. 1 Balance J J J. Herbert Jan. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

64 Problem 9-3B (continued) Braun, Inc. S PAYABLE LEDGER Jan. 1 Balance J17 1, , J , Mejia, Inc. Jan. 1 Balance J Vargas, Inc. Jan. 1 Balance J Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 425

65 Problem 9-3B (concluded) May's Beauty Store Schedule of Accounts Receivable January 31, T. Cantrell J. Herbert Total Accounts Receivable $ $ May's Beauty Store Schedule of Accounts Payable January 31, Braun, Inc. Mejia, Inc. Vargas, Inc. Total Accounts Payable $1, $2, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

66 Problem 9-4B SALES JOURNAL PAGE 39 INV. NO. CUSTOMER'S S RECEIVABLE DR. SALES CR Apr Maxwell Company B. A. Fitzpatrick Company Durham Hardware Briggs and Campos Pena and Carr O'Neill Company Durham Hardware Total 4, (113) (411) GENERAL JOURNAL PAGE 74 DESCRIPTION Apr. 13 Sales Returns and Allowances Accounts Receivable, 3 4 B. A. Fitzpatrick Company 113/ Issued credit memo no Sales Returns and Allowances Accounts Receivable, 8 9 Briggs and Campos 113/ Issued credit memo no Sales Returns and Allowances Accounts Receivable, Durham Hardware 113/ Issued credit memo no Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 427

67 Problem 9-4B (continued) GENERAL LEDGER Accounts Receivable NO. 113 Apr. 1 Balance 1, J , J J S39 4, , Sales NO. 411 Apr. 1 Balance 11, S39 4, , Sales Returns and Allowances NO. 412 Apr. 1 Balance J J J Briggs and Campos S RECEIVABLE LEDGER Apr. 1 Balance S , J , Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.

68 f Problem 9-4B (continued) Durham Hardware CHAPTER 9 Apr. 8 S J S B. A. Fitzpatrick Company Apr. 7 S J Maxwell Company Apr. 1 Balance S O'Neill Company Apr. 26 S Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part. 429

69 Problem 9-4B (concluded) Pena and Carr Apr. 21 S R. J. Hinton Company Schedule of Accounts Receivable April 30, Briggs and Campos Durham Hardware B. A. Fitzpatrick Company Maxwell Company O'Neill Company Pena and Carr Total Accounts Receivable $1, $4, Cengage Learning. All Rights Reserved. May not be scanned, copied, duplicated, or posted to a publicly accessible website, in whole or in part.