Question

Revenue Journal; Accounts Receivable subsidiary and General Ledgers Sage Learning Centers was established on July 20 to provide educational services. The services provided during the remainder of the month are as follows July 21. Issued Invoice No. 1 to ). Dunlop for $90 on account. July 22. Issued Invoice No. 2 to K. Tisdale for $375 on account. July 24. Issued Invoice No. 3 to T. Quinn for $80 on account. July 25. Provided educational services, $145, K. Tisdale in exchange for educational supplies July 27. Issued Invoice No. 4 to F. Mintz for $220 on account. July 30. Issued Invoice No. 5 to D. Chase for $200 on account. July 30. Issued Invoice No. 6 to K. Tisdale for $155 on account. Issued Invoice No. 7 to T. Quinn for $105 on account. July 31.

Answer 1

1)a)	REVENUE   JOURNAL				PAGE      1
	Date	Invoice No.	Amount Debited	Post. Ref	Accts. Rec . Dr.
					Fees Earned Cr.
	Jul-21	1	J. Dunlop		$ 90
	Jul-22	2	K.Tisdale		$ 375
	Jul-24	3	T.Quinn		$ 80
	Jul-27	4	F.Mintz		$ 220
	Jul-30	5	D.Chase		$ 200
	Jul-30	6	K.Tisdale		$ 155
	Jul-31	7	T.Quinn		$ 105
	Jul-31				$ 1,225
					(12 ) (41)

1)b)	JOURNAL			PAGE      1
	Date	Description	Post. Ref	Debit	Credit
	Jul-25	Supplies	13	$ 145
		Fees Earned	14		$ 145

1)c)	ACCOUNTS RECEIVABLE SUBSIDIARY LEDGER
	Date	Item	Post. Ref	Dr.	Cr.	Balance
	Name: D.Chase
	Jul-30		R1	$ 200		$ 200
	Name: J.Dunlop
	Jul-21		R1	$ 90		$ 90
	Name: F.Mintz
	Jul-27		R1	$ 220		$ 220
	Name: T.Quinn
	Jul-24		R1	$ 80		$ 80
	Jul-31		R1	$ 105		$ 185
	Name: K.Tisdale
	Jul-22		R1	$ 375		$ 375
	Jul-30		R1	$ 155		$ 530

2)	GENERAL LEDGER
						Balance
	Date	Item	Post. Ref	Dr.	Cr.	Dr.	Cr.
	Account : Accounts Receivable #12
	Jul-31		R1	$ 1,225		$ 1,225
	Account: Supplies # 13
	Jul-25		J1	$ 145		$ 145
	Account: Fees Earned # 41
	Jul-25		J1		$ 145		$ 145
	Jul-31		R1		$ 1,225		$ 1,370

3)a)
	Answer: $ 1,225 ( $200+ $90+ $ 220 +$ 185 +$ 530 )
3) b)	Answer : $ 1,225 ( see in required 2)

4)	The computerized system is more efficient . Because each sales
	transaction will enter into a electronic invoice form. Hence, the posting
	to the accounts receivable and fees earned ledgers will be automatic.
	and Also sums and totals in subsidiary ledgers are to be calculated automatically.
	and there is no separate posting to an accounts receivable control account,
	because there is no needed to verify the accuracy of accounts totals. There
	would not be a math or posting error. The computerized system will provide
	management current customer account balance information since the
	posting are automatic.