E7-3 On September 1 the balance of the Accounts Receivable control account in th
ID: 2367204 • Letter: E
Question
E7-3 On September 1 the balance of the Accounts Receivable control account in the general ledger of Seaver Company was $10,960. The customers' subsidiary ledger contained account balances as follows: Ruiz $1,440, Kingston $2,640, Bannister $2,060, Crampton $4,820. At the end of September the various journals contained the following information. Sales journal: Sales to Crampton $800; to Ruiz $1,260; to Iman $1,330; to Bannister $1,100. Cash receipts journal: Cash received from Bannister $1,310; from Crampton $2,300; from Iman $380; from Kingston $1,800; from Ruiz $1,240. General journal: An allowance is granted to Crampton $220. Set up control and subsidiary accounts and enter the beginning balances. Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.) (If answer is zero, please enter 0. Do not leave any fields blank.) General Ledger Accounts Receivable Date Explanation Ref. Debit Credit Balance Sept. 1 Balance P S CR G Accounts Receivable Subsidiary Ledger Bannister Date Explanation Ref. Debit Credit Balance Sept. 1 Balance P S CR Crampton Date Explanation Ref. Debit Credit Balance Sept. 1 Balance P S CR G Iman Date Explanation Ref. Debit Credit Balance Sept. 1 P 0 S CR Kingston Date Explanation Ref. Debit Credit Balance Sept. 1 Balance P CR Ruiz Date Explanation Ref. Debit Credit Balance Sept. 1 Balance P S CR Correct. Incorrect. Prepare a list of customers and prove the agreement of the controlling account with the subsidiary ledger at September 30, 2010. SEAVER COMPANY Schedule of Customers As of September 30, 2010 Bannister $ Crampton Iman Kingston Ruiz Total $ Accounts Receivable $Explanation / Answer
AR control account
Beg. bal. $10,960
+ Sales from SJ $4,490
- Receipts from CRJ $7,030
- Allowance from GJ $220
= Endg bal. $8,200
Subsidiary accounts:
Ruiz:
Beg. bal. $1,440
+ Sale $1,260
- Receipt $1,240
= Endg bal. $1,460
Kingston
Beg. bal. $2,640
+ Sale $0
- Receipt $1,800
= Endg bal. $840
Bannister
Beg. bal. $2,060
+ Sale $1,100
- Receipt $1,310
= Endg bal. $1,850
Crampton
Beg. bal. $4,820
+ Sale $800
- Receipt $2,300
- Allowance $220
= Endg bal. $3,100
Iman
Beg. bal $0
+ Sale $1,330
- Receipt $380
= Endg bal. $950
AR listing:
Ruiz $1,460
Kingston $840
Bannister $1,850
Crampton $3,100
Iman $950
Total $8,200
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