Question

Gilder Company's chart of accounts includes the following selected accounts. 101 Cash 112 Accounts Receivable 120 Merchandise Inventory 301 O. Grider, Capital 401 Sales 414 Sales Discounts 505 Cost of Goods Sold On April 1 the accounts receivable subsidiary ledger of Grider Company showed the following balances: Ogden $1,550 Chelsea $1,200 Eggleston Co. $2,900 Baez $1,800 A/R $. (control account in general ledger) The April transactions involving the receipt of cash were as follows. 1 The owner, O. Grider, invested additional cash in the business $7,200. 4 Received check for payment of account from Baez less 2% cash discount. 5 Received check for $920 in payment of invoice no. 307 from Eggleston Co. 8 Made cash sales of merchandise totaling $7,245.The cost of the merchandise sold was $4,347. 10 Received check for $600 in payment of invoice no. 309 from Ogden. 11 Received cash refund from a supplier for damaged merchandise $740. 23 Received check for $1,500 in payment of invoice no. 310 from Eggleston Co. 29 Received check for payment of account from Chelsea. Instructions: 1 Grider Company uses special journals. The Cash Receipts journal is used to record all cash receipts. 2 Record the April transactions in the Cash Receipts journal. When a subsidiary account is used, post immediately to the subsidiary account (not to A/R), using the in the cash receipts journal to signify that the amount was posted to a subsidiary ledger account. 3 At the end of the month, total the journal and verify that Dr = Cr. Post the totals to the general ledger. Remember the posting reference numbers and the X. 4 Prepare the Schedule of Accounts Receivable. Compare its balance to the total in the general ledger Accounts Receivable control account. The totals should equal. Check figures: Balancing total is $21,205 and Accounts Receivable is $1,430.

I only need help with the cash receipts journal. Thanks

Answer 1

Cash Receipts Journal

Date	Account credited	Posting reference (PR)	Explanation	Debits		Credits			COGS Dr. Merchandise Inventory Cr.
				Cash Dr.	Sales Discount Dr.	Accounts Receivable Cr.	Sales Cr.	O.Grider, Capital Cr.
Apr-01	Capital		Additional capital brought in by owner	$      7,200				$           7,200
Apr-04	Baez		Payment of account balance (2% discount)	$      1,764	$                 36	$              1,800
Apr-05	Eggleston co		Invoice no 307	$         920		$                 920
Apr-08	Sales		Cash Sales	$      7,245			$   7,245		$            4,347
Apr-10	Ogden		Invoice no 309	$         600		$                 600
Apr-11	Supplier *		Cash refund from supplier for defective merchandise	$         740		$                 740
Apr-23	Eggleston co		Invoice no 310	$      1,500		$              1,500
Apr-29	Chelsea		Payment on account settlement	$      1,200		$              1,200
Total				$   21,169	$                 36	$              6,760	$   7,245	$           7,200
Account Numbers				(101)	(414)	(112)	(401)	(301)	(515), (120)
Total Debits and Total Credits				$                               21,205		$                                                           21,205

Notes:

• Place a check mark in PR column as asked in the question.

*In the transaction dated Apr-23, it is assumed that the Purchase return is recorded by debiting suppliers account (Suppliers Account Dr. Purchase returns account Cr.). Hence the cash refund is recorded against suppliers account as receivable.