Question

Sheridan Company uses both special journals and a general journal as described in this chapter. On June 30, after all monthly postings had been completed, the Accounts Receivable control account in the general ledger had a debit balance of $297,400; the Accounts Payable control account had a credit balance of $76,900. The July transactions recorded in the special journals are summarized below. No entries affecting accounts receivable and accounts payable were recorded in the general journal for July. Sales journal Purchases journal Cash receipts journal Cash payments journal Total sales Total purchases Accounts receivable column total Accounts payable column total $168,000 $60,000 $142,700 $47,500 (a) Your answer is incorrect. What is the balance of the Accounts Receivable control account after the monthly postings on July 31? The balance of the Accounts Receivable control account e Textbook and Media Save for Later Attempts: unlimited Submit Answer (b) What is the balance of the Accounts Payable control account after the monthly postings on July 31? The balance of the Accounts Payable control account $ e Textbook and Media Save for Later Attempts: unlimited Submit Answer

Answer 1

a) Balance of Accounts Receivable control account = $322,700

July 31 , Accounts Receivable = Opening Balance + Total Sales - Cash Receipts

= $297,400 + $168,000 - $142,700

= $322,700

b) Balance of Accounts Payable control account = $89,400

July 31, Accounts Payable = Opening balance + Total Purchase - Cash Paid

   = $76,900 + $60,000 - $47,500

= $89,400

c) The column total of $168,000 in the sales journal would be posted to the credit side of Sales Account and debit side of the Accounts Receivable Account in the general ledger.

d) The Accounts Receivable column total of $142,700 in the cash receiptys journal would be posted to the credit side of Accounts Receivable account in the general ledger.