AB-16E - Horngren'S Financial And Managerial Accounting

Question

The sales and cash receipts journals of Caverly Office Products include the following entries:

Sales Journal                                                           Page 1
Date	Invoice No.	Customer Account Debited	Post. Ref.	Accounts Receivables Dr Sales Revenue Cr	Cost of Goods Sold Dr. Merchandise Inventory Cr.
2018
May 7	601	L. Ebert		110	63
10	602	T. Ross		65	33
10	603	E. Loop		95	37
12	604	B. Goebel		120	76
May 31		Total		390	209

 

Cash Receipt Journal                                                  Page 5
Date	Account Credited	Post. Ref.	Cash Dr	Accounts Receivables Cr	Sales Revenue Cr	Sales Discount Forfeited Cr	Other Accounts Cr	Cost of goods sold Dr Merchandise Inventory Cr
2018
May 16	L. Ebert
19	E. loop
24			320		320			250
30	T. Ross
May 31	Total

 

Identify the missing information in the cash receipts journal for those transactionslisted. All credit sales are terms n/30. Assume all the accounts are paid in full.Also, total the columns in the cash receipts journal and show that total debits equaltotal credits.

 

Step-by-Step Solution

Answer

Total Cash Received:$590 

Step1: Missing Information in Cash Receipt Journal

Cash Receipt Journal                      Page 5
Date	Account Credited	Post. Ref.	Cash Dr	Accounts Receivables Cr	Sales Revenue Cr	Sales Discount Forfeited Cr	Other Accounts Cr	Cost of goods sold Dr Merchandise Inventory Cr
2018
May 16	L. Ebert		$110	$110
19	E. loop		95	95
24			320		320			250
30	T. Ross		65	65

 

 

Step 2: Total of Cash Receipt Journal

Cash Receipt Journal       Page 5
Date	Account Credited	Post. Ref.	Cash Dr	Accounts Receivables Cr	Sales Revenue Cr	Sales Discount Forfeited Cr	Other Accounts Cr	Cost of goods sold Dr Merchandise Inventory Cr
2018
May 16	L. Ebert		$110	$110
19	E. loop		95	95
24			320		320			250
30	T. Ross		65	65
May 31	Total		$590	$270	$320			$250