6. The following are transactions for Brad for the month of March. Journalize th
ID: 2583417 • Letter: 6
Question
6. The following are transactions for Brad for the month of March. Journalize the transactions, record to the accounts receivable subsidiary ledger and post to the general ledger. Prepare a schedule of accounts receivable for the end of March (40 points) Mar. 1 Brad invested an additional $10,000 in his business. Mar. 3 Sold $1,500 of merchandise on account to H. Holand, sales invoice No. 12, terms I/10, n/30. 5 Sold $800 of merchandise on account to T. Traer sales invoice No. 13, terms 2/10, n/30 Mar. Mar. 13 Received cash from H. Holand in payment for March 3 transaction, less the discount Mar. 14 Issued credit memorandum No. I to T. Traer for $100 for merchandise returned from March 5 sale on ac- count.Explanation / Answer
Journal Entry Date Account Name Debit Credit March,1 Cash/bank A/c $ 10,000 To Capital A/c $ 10,000 March,3 H.Holand A/c $ 1,500 To Sales A/c $ 1,500 March,5 T.Traer A/c $ 800 To Sales A/c $ 800 March,13 Cash A/c $ 1,485 Discount A/c $ 15 To H.Holand A/c $ 1,500 (Being Payment is made in 10 days of sale,hence on the terms of 1/10, 1% discount is given(1500*1%= 15) March,14 Sales return A/c $ 100 To T.Traer A/c $ 100 H.Holand A/c Date Particulars Amount Date Particulars Amount March,3 To Sales A/c $ 100,000 March,13 By Cash A/c $ 1,485 March,13 By Discount A/c $ 15 $ 100,000 $ 1,500 T.Traer A/c March,5 To Sales A/c $ 800 March,14 By Sales Return A/c $ 100 31/12/2019 By Balance C/f $ 700 $ 800 $ 800
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