Question Autumn Cove Inc. has $2,010 in the December 1 balance of the accounts r
ID: 2492334 • Letter: Q
Question
Question Autumn Cove Inc. has $2,010 in the December 1 balance of the accounts receivable account consisting of $880 from the Champion Co. and $1,130 from Veritas Co. Transactions related to revenue and cash receipts completed by Autumn Cove Inc. during the month of December 2014 are as follows: Dec. 3. Issued Invoice No. 622 for services provided to Palace Corp., $2,340 Dec. 5. Received cash from Champion Co., on account, for $880 Dec. 8. Issued Invoice No. 623 for services provided to Sunny Style Inc., $1,690 Dec. 12. Received cash from the Veritas Co., on account, for $1,130 Dec. 18. Issued Invoice No. 624 for services provided to Amex Services Inc., $2,750 Dec. 23. Received cash from Palace Corp. for Invoice No. 622. Dec. 28. Issued Invoice No. 625 to Veritas Co., on account, for $980 Dec. 30. Received cash from Rogers Co. for services provided, $80 a) Prepare a single-column revenue journal and a cash receipts journal to record these transactions. Use the following column headings for the cash receipts journal: Fees Earned Cr., Accounts Receivable Cr., and Cash Dr. Place a check mark in the Post. Ref. column to indicate when the accounts receivable subsidiary ledger should be posted. b) Prepare a listing of the accounts receivable customer balances and verify that the total of the accounts receivable customer balances equals the balance of the accounts receivable controlling account on December 31, 2014. c) Why does Autumn Cove Inc. use a subsidiary ledger for accounts receivable?
Explanation / Answer
REVENUE JOURNAL
______________________________________________________________________________________________
DATE INVOICEN NO. ACCOUNT DEBITEDNNNN POST REF. ACCOUNTS RECEIVABLE ..DR
FEES EARNED .. . . . . . ... . .CR
DEC.3 622 PALACE CORP $2,340
DEC.8 623 SUNNY STYLE INC. 1,690
DEC.18 624 AMEX SERVICES INC., 2,750
DEC.28 625 VERITAS CO. 980
NAME:CHAMPION CO.
________________________________________________________________________________________
DATE ITEM POST REF DEBIT CREDIT BALANCE
NAME:VARITAS CO:
_________________________________________________________________________________________
DATE ITEM POST REF DEBIT CREDIT BALANCE
_________________________________________________________________________________________
DATE ITEM POST REF DEBIT CREDIT BALANCE
DEC.3 $2,340 -- 2,340
DEC.23 2,340 0
NAME:SUNNY STYLE INC _________________________________________________________________________________________
DATE ITEM POST REF DEBIT CRDIT BALANCE
_______________________________________________________________________________________
DATE ITEM POST REF DEBIT CREDIT BALANCE
DEBIT CREDIT
Autumn Cove.Inc has large no. of individual accounts with common featrue are to grouped together to know the total belong to that group. Here,Autumn Cove Inc. has all accounts of Accounts receivable, to know the total of accounts receivable and balance in Accounts receivable account, it has to preapre subsidiary ledger of Accounts receibable.
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