Question

 Problem 7-01A a-c (Video)

 Blossom Company's chart of accounts includes the following selected accounts.

 101 Cash

 401 Sales Revenue

 112 Accounts Receivable 414 Sales Discounts

 120 Inventory

 505 Cost of Goods Sold

 301 Owner's Capital

 On April 1, the accounts receivable ledger of Blossom Company showed the following balances: Morrow $1,600, Rose $1.210, Jennings Co. $2,910, and Dent $2,150. The April

 transactions involving the receipt of cash were as follows.

 Apr. 1 The owner, T. Blossom, Invested additional cash in the business 57,260.

 4 Received check for payment of account from Dent less 2% cash discount.

 5 Received check for t900 in payment of Invoice no. 307 from Jennings Co.

 8 Made cash sales of merchandise totaling $7.285. The cost of the merchandise sold was $4,371.00.

 10 Received check for $635 in payment of Invoice no. 309 from Morrow.

 11 Received cash refund from a supplier for damaged merchandise $690.

 23 Received check for $1,145 in payment of invoice no. 310 from Jennings Co.

 29 Received check for payment of account from Rose (no cash discount allowed).

 Jounalize the transactions above in a six-column cash receipts journal and cross-foot the journal. (Record entries in the order displayed in the problem statement. Round answers to 0 decimal places, e.g. 5,275.)

 Insert the beginning balances in the Accounts Receivable control and subsidiary accounts, and post the April transactions to these accounts. (Post entries in the order of entries presented in the previous part.)

 Prove the agreement of the control account and subsidiary account balances. (Do not list those accounts that have zero ending balance.)

Answer 1

Cash Receipts Journal
Date	Account Credited	Ref.	Cash Dr.	Sales Discounts Dr.	Accounts Receivable Cr.	Sales Revenue Cr.	Other Accounts Cr.	Cost of Goods Sold Dr. Inventory Cr.
Apr. 1	Owner's Capital	301	7260				7260
Apr. 4	Dent	√	2107	43	2150
Apr. 5	Jennings Co.	√	900		900
Apr. 8			7285			7285		4371
Apr. 10	Morrow	√	635		635
Apr. 11	Inventory	120	690				690
Apr. 23	Jennings Co.	√	1145		1145
Apr. 29	Rose	√	1210		1210
			21232	43	6040	7285	7950	4371
			(101)	(414)	(112)	(401)	(X)	(505)(120)

General Ledger
Accounts Receivable					No. 112
Date	Explanation	Ref.	Debit	Credit	Balance
Apr. 1	Balance	√			7870
Apr. 30		CR1		6040	1830
Accounts Receivable Subsidiary Ledger
Morrow
Date	Explanation	Ref.	Debit	Credit	Balance
Apr. 1	Balance	√			1600
Apr. 10		CR1		635	965
Rose
Date	Explanation	Ref.	Debit	Credit	Balance
Apr. 1	Balance	√			1210
Apr. 29		CR1		1210	0
Jennings
Date	Explanation	Ref.	Debit	Credit	Balance
Apr. 1	Balance	√			2910
Apr. 5		CR1		900	2010
Apr. 23		CR1		1145	865
Dent
Date	Explanation	Ref.	Debit	Credit	Balance
Apr. 1	Balance	√			2150
Apr. 4		CR1		2150	0

Accounts receivable balance:	1830
Subsidiary account balances:
Morrow	965
Jennings	865
Total $	1830