Posting to subsidiary ledger accounts; preparing a schedule of accounts receivable At t...

Posting to subsidiary ledger accounts; preparing a schedule of accounts receivable

At the end of May, the sales journal of Mountain View appears as follows. (There are no sales taxes on Mountain View’s sales.)

Mountain View also recorded the return of defective merchandise with the following entry.

Required

1. Open an accounts receivable subsidiary ledger that has a T-account for each customer listed in the sales journal. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer’s account. Ignore sales tax. Assume that these accounts have zero balances at the beginning of May.

2. Open a general ledger that has T-accounts for Accounts Receivable, Sales, and Sales Returns and Allowances. Assume that these accounts have zero balances at the beginning of May. Post the sales journal and any portion of the general journal entry that affects these accounts.

3. Prepare a schedule of accounts receivable as of May 31 and prove that its total equals the balance in the Accounts Receivable controlling account at May 31.