Reference no: EM133013004

Question - 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 -

1) Record the above transactions in the journals.

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.

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