Reference no: EM132911347

In November2020the Martin Ltd.was involved in the following transactions:

a) On 3 November, the business sold goods to P.Joker on credit. Invoice number PJ 42,price $1,000,GST $100, terms 1/10,n/60.

b) On 4 November,the business sold goods to B. Jake on credit. Invoice number BJ23 with amount of $1,650(including GST $150),tems 1/20,n/30.

c) On 11 November, the business received a cheque from P. Joker for payment of the sale made on 3 November.

d) On 12 November, partial return of sales was made on 4 November (invoice number BJ 23) for$55 including GST $5.Prepared a credit adjustment note.

e) On15 November,the business sold goods to P.Joker. Invoice number PJ43,price $200 GST $20. Cash payment was received.

Required:

Problem 1) Record the above transactions in the journals

Problem 2) The Accounts Receivable general ledger has a debit balance of $2,310. P. Joker

subsidiary ledger has a debit balance of $420 and B. Jake subsidiary ledger has a debit balance of $1 890 at the beginning of November. Make a Schedule of Accounts Receivable on 30 November showing the reconciliation between the subsidiary ledgers and its control account

Problem 3) Explain whether a retail business should use a subsidiary ledger in their accounts