Reference no: EM132698572

Entertainment Inc. is a retail store that rents movies and sells music CDs over the Internet. The firm's cash receipts for February and the general ledger accounts used to record these transactions are shown below.

GENERAL LEDGER ACCOUNTS
101Cash$5,060                          Dr. 401Sales
109Notes Receivable 900             Dr. 491Interest Income
111Accounts Receivable 4,125     Dr. 620Cash Short or Over
129Supplies 710                                  Dr.
231Sales Tax Payable 345                     Cr.
301Jason Wilson, Capital 35,000              Cr.

DATE TRANSACTIONS

1. Feb.3 Received $600 from Danielle Pelzel, a credit customer, on account.
2. 5 Received a cash refund of $130 for damaged supplies.
3. 7 Had cash sales of $5,800 plus sales tax of $464 during the first week of February; there was a cash shortage of $70. 
4. 9 Jason Wilson, the owner, invested an additional $16,000 cash in the business. 
5. 12 Received $480 from Kyela Jones, a credit customer, in payment of her account. 
6. 14 Had cash sales of $4,550 plus sales tax of $364 during the second week of February; there was an overage of $38. 
7. 16 Received $550 from Sadie Nelson, a credit customer, to apply toward her account. 
8. 19 Received a check from Ketura Pittman to pay her $900 promissory note plus interest of $36.
9. 21 Had cash sales of $5,050 plus sales tax of $404 during the third week of February. 
10. 25 Alfred Herron, a credit customer, sent a check for $680 to pay the balance he owes.
11. 28 Had cash sales of $5,100 plus sales tax of $408 during the fourth week of February; there was a cash shortage of $46.

Required:

Question 1: Create a general ledger accounts and enter the balances as of February 1, 2019.

Question 2: Record the transactions in a cash receipts journal.

Question 3: Post the individual entries from the Other Accounts Credit section of the cash receipts journal to the proper general ledger accounts.

Question 4: Total, prove, and rule the cash receipts journal as of February 28, 2019.

Question 5: Post the column totals from the cash receipts journal to the proper general ledger accounts.

Analyze:

Question 6: What total accounts receivable were collected in February?