Special journals, subsidiary ledgers, and schedule of accounts receivable LO5 LO6 LO7...

Special journals, subsidiary ledgers, and schedule of accounts receivable LO5 LO6 LO7

Wiset Company completes these transactions during April of the current year (the terms of all its credit sales are 2/10, n/30).

Required

1. Prepare a sales journal like that in Exhibit 11.6 and a cash receipts journal like that in Exhibit 11.10.

Number both journal pages as page 3. Then review the transactions of Wiset Company and enter

those that should be journalized in the sales journal and those that should be journalized in the cash

receipts journal. Ignore any transactions that should be journalized in a purchases journal, a cash disbursements

journal, or a general journal.

2. Open the following general ledger accounts: Cash, Accounts Receivable, Inventory, Long-Term Notes

Payable, Sales, and Sales Discounts. Enter the March 31 balances for Cash ($85,000), Inventory

($125,000), and Long-Term Notes Payable ($210,000). Also open accounts receivable subsidiary

ledger accounts for Paula Kohr, Page Alistair, and Nic Nelson.

3. Verify that amounts that should be posted as individual amounts from the journals have been posted.

(Such items are immediately posted.) Foot and crossfoot the journals and make the month-end postings.

4. Prepare a trial balance of the general ledger and prove the accuracy of the subsidiary ledger by preparing

a schedule of accounts receivable.