Reference no: EM133008510

Question - Stocked Warehouse sells clothing to retailers. During the month of March 2016, the following transactions occurred. Assume zero opening balances for the subledger and general ledger accounts. Assume no entries were made directly to the accounts receivable general ledger from the general journal.

Mar 2 Sold merchandise to Fashion House for $6,900 cash. The inventory had a cost of $4,140. The invoice number was #692

Mar 7 Received a loan from the Bank of Charlotte for $7,000.

Mar 13 Sold merchandise to Michelle's on account for $8,500. The inventory had a cost of $5,950. The invoice number was #693.

Mar 15 Sold merchandise to Dress Me for $9,100 on account. The inventory had a cost of $5,915. The invoice number was #694.

Mar 22 Received full payment from Michelle's for the sale on March 13.

Mar 31 Received $23 of interest earned on a savings account.

Required -

a) Record the above transactions in the sales journal and the cash receipts journal.

b) Post the appropriate transactions from the journals to the subledger accounts.

c) At the end of the month, total the journals and update the accounts receivable control account.