1. Cassandra Wilson Company uses a six column cash receipts journal with the following columns.
|
Cash (Dr.) |
Other Accounts (Cr.) |
|
Sales Discounts (Dr.) |
Cost of Goods Sold (Dr.) and |
|
Accounts Receivable (Cr.) |
Inventory (Cr.) |
|
Sales Revenue (Cr.) |
Cash receipts transactions for the month of July 2012 are as follows.
July 3 Cash sales total $5,800 (cost, $3,480).
5 Received a check for $6,370 from Jeltz Company in payment of an invoice dated June 26 for $6,500, terms 2/10, n/30.
9 Cassandra Wilson, the proprietor, made an additional investment of $5,000 in cash in the business.
10 Cash sales total $12,519 (cost, $7,511).
12 Received a check for $7,275 from R. Eliot & Co. in payment of a $7,500 invoice dated
July 3, terms 3/10, n/30.
15 Received an advance of $700 cash for future services.
20 Cash sales total $15,472 (cost, $9,283).
22 Received a check for $5,880 from Beck Company in payment of $6,000 invoice dated
July 13, terms 2/10, n/30.
29 Cash sales total $17,660 (cost, $10,596).
31 Received cash of $200 on interest earned for July.
Instructions
(a) Journalize the transactions in the cash receipts journal.
(b)Contrast the posting of the Accounts Receivable and Other Accounts
columns.