Question

Accounting Cyde Review 7-01 a1-f2 Sunland Co. uses a perpetual inventory system and both an accounts receivable and an accounts payable subsidiary ledger Balances related to both the general ledger and the subsidiary ledger for Sunland an indicated in the working papers. Presented below are a series of transactions for Sunland Co. for the month of January. Credit sales termes are 2/10, 130. The cost of all merchandise sold was 60% of the sale price. GENERAL LEDGER Account Number 101 112 115 120 126 130 Account Title Cash Accounts Receivable Notes Receivable Inventory Supplies Prepaid Insurance Equipment Accumulated Depreciation-Equip. Accounts Payable Owner's Capital January 1 Opening Balance $34,250 13,300 41,000 15,000 1,000 1,500 7,350 1,600 35,500 76,300 301 Schedule of Accounts Receivable (from accounts receivable subsidiary ledger) January 1 Customer Opening Balance R. Beltre $1,700 B. Santos 7,500 S. Mahay 4,100 Schedule of Accounts Payable (from accounts payable subsidiary ledger) January 1

Answer 1

Date	Account Titles & Explanations	Debit	Credit
		$	$
Jan 9	Inventory ( $ 300 x 60 % )	180
	Cost of Goods Sold		180
	Cost of merchandise returned
Jan 18	Accounts Payable	400
	Inventory		400
	Received credit for returned goods
Jan 21	Accounts Payable	17,000
	Notes Payable		17,000
	Payment of balance due
Jan 21	Cash	882
	Sales Discount	18
	Accounts Receivable		900
	Receipt of balance due