Question

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

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

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

Open the general ledger accounts and enter the balances as of February 1, 2019.

Record the transactions in a cash receipts journal.

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

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

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

Analyze:
What total accounts receivable were collected in February?

Answer 1

Date	Particulars	Amount($)	Amount($)
Feb3	Cash	600
	Accounts Receivable		600
	Cash received fromfrom Danielle Pelzel
feb5	Cash	130
	Supplies		130
	Cash cash refund for for damaged supplies
feb7	Cash	5730
	Sales Tax Payable	464
	Cash Short or Over	70
	Sales		6264
	Cash Sales
Feb9	Cash	16000
	Jason Wilson, Capital		16000
	Capital  invested an additional
Feb12	Cash	480
	Accounts Receivable		480
	Cash Receive on Credit Sales
Feb 14	Cash	4588
	Sales Tax Payable	364
	Sales		4914
	Cash Short or Over		38
Feb 16	Cash	550
	Accounts Receivable		550
	Cash Receive from Sadie Nelson on account
Feb 19	Cash	936
	Interest Income		36
	Notes Receivable		900
	Cash Recived from Ketura Pittman with Interest
Feb21	Cash	5050
	Sales Tax Payable	404
	Sales		5454
	Cash Sales
Feb25	Cash	680
	Accounts receivable		680
Feb 28	Cash	5054
	Sales Tax Payable	408
	Cash Short or Over	46
	Sales		5508
	Cash Sales

Cash Ladger

Date	Debit($)	Credit($)	Balance($)
	5060		5060
3-Feb	600		5660
5-Feb	130		5790
7-Feb	5730		11520
9-Feb	16000		27520
12-Feb	480		28000
14-Feb	4588		32588
16-Feb	550		33138
19-Feb	936		34074
21-Feb	5050		39124
25-Feb	680		39804
28-Feb	5054		44858

Accounts Receivable

Date	Debit($)	Credit($)	Balance($)
	4125		4125
3-Feb		600	3525
12-Feb		480	3045
16-Feb		550	2495
25-Feb		680	$1815

Sales Tax Payable

Date	Debit($)	Credit($)	Balance($)
		345	345
7-Feb	464		809
14-Feb	364		1173
21-Feb	404		1577
28-Feb	408		$1985

Cash Short or Over

Date	Debit($)	Credit($)	Balance($)
7-Feb	70		70
14-Feb		38	32
28-Feb	46		$78

Supplies

Date	Debit($)	Credit($)	Balance($)
	710		710
5-Feb		130	580

Sales

Date	Debit($)	Credit($)	Balance($)
7-Feb		6264	6264
14-Feb		4914	1350
21-Feb		5454	(4104)
28-Feb		5508	($9612)

Notes Receivable

Date	Debit($)	Credit($)	Balance($)
	900		900
19-Feb		900	0

Jason Wilson, Capital

Date	Debit($)	Credit($)	Balance($)
		35000	35000
9-Feb		16000	$19000

Interest Incomel

Date	Debit($)	Credit($)	Balance($)
19-Feb		36	$36