Question

Incredible Sound is a wholesale business that sells musical instruments.Transactions involving sales and cash receipts for the firm during April 2019 follow. The firm sells it's merchandise for cash and on open account. During April Incredible Sounds engaged in the following transaction.

April 2019 Transactions

1 Sold merchandise for $ 4,200 to Alto Music Center; Issued Invoice 3912 with terms of 2/10, n/30.

2 Received a check for $1,813 from Music Supply Store in payment of invoice 2718 of March 25 ($ 1,850) , less cash discount ($37)

5 Sold merchandise totaling $1,650 in cash to a new customer who has not yet established credit.

7 Merchandise of $ 80 sold on April 5 is returned for cash refund.

8 Sold merchandise for $6,200 to Music Warehouse; issued invoice 3913 with terms of 2/10 n/30

10 Received payment from Alto Music Center in payment of invoice 3912, less cash discount

15 Accepted a return of damaged merchandise form Music Warehouse: issued credit Memorandum 105 for $ 2,150. The original sale was made on invoice 3913 on April 8

17 Received payment from Music Wearhouse for the sale of April 8, less the return on April 15; Music Wearhouse deducted the appropriate cash discount from its payment

19 Received a check for $ 2,150 as payment in full for Oldies Sound for Invoice 3850 dated back March 20

20 Sold merchandise for $10,900 to Hawk Music Center ; issued invoice 3914 with terms of 2/10, n/30

25 Sold merchandise for $10,500 to Modern Sounds; issued invoice 3915 with terms of 2/10, n/30

26 Sold merchandise for $8,300 to Country Tunes Issued; invoice 3916 with terms of 2/10 , n/30

27 Accepted a return of damaged merchandise from Modern Sound ; issued credit Memorandum 106 for $470 The original sale was made on invoice 3915 on April 25

29 Received payment for Hawk Music Center for the sale of April 20, less cash discount

30 Sold merchandise for $2,900 Oldies Sound; issued invoice 3917 with terms of 2/10, n/30

Post the above transaction to the appropriate accounts in the general ledger and in the accounts receivable ledger

Prepare a schedule of accounts receivable

General Ledger Accounts

101 Cash $27,100 Dr

111 Accounts receivable $ 4,000 Dr

401 Sale

451 Sales Return and allowance

452 Sales Discounts

Accounts Receivable Ledger Accounts

Alto Music Center

Country Tunes

Hawk Music Center

Modern Sounds

Music Supply Store $1,850

Music Wearhouse

Oldies Sounds 2,150

What were the total sale on account in April, prior to any returns,allowances or discounts?

Total Sales on Account

Answer 1

General Ledger and Accounts Receivable Ledgers

101 Cash
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Opening Balance			$            27,100
Accounts receivable - Music Supply Store	$              1,813		$            28,913
Sales - New Customer	$              1,650		$            30,563
Sales Return and allowance		$                    80	$            30,483
Accounts receivable - Alto Music Center	$              4,116		$            34,599
Accounts receivable - Music Wearhouse	$              3,969		$            38,568
Accounts receivable - Oldi sounds	$              2,150		$            40,718
Accounts receivable - Hawk Music Center	$            10,682		$            51,400
	$            24,380	$                    80

111 Accounts receivable
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Opening Balance			$              4,000
Sales to Alto Music Cente	$              4,200		$              8,200
Collection from - Music Supply Store		$              1,850	$              6,350
Sales to Music Warehouse	$              6,200		$            12,550
Collection from - Alto Music Center		$              4,200	$              8,350
Sales return and Allowance		$              2,150	$              6,200
Collection from - Music Warehouse		$              4,050	$              2,150
Collection from - Oldi Sounds		$              2,150	$                     -
Sales to Hawk Music Center	$            10,900		$            10,900
Sales to Modern Sounds	$            10,500		$            21,400
Sales to Country Tunes	$              8,300		$            29,700
Sales return and Allowance - Modern Sounds		$                 470	$            29,230
Collection from - Hawk Music Center		$            10,900	$            18,330
Sales to Oldi Sounds	$              2,900		$            21,230
	$            43,000	$            25,770

401 Sale
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Accounts receivable - Alto Music Cente		$              4,000	$            (4,000)
Cash - New Customer		$              1,650	$            (5,650)
Accounts receivable - Music Warehouse		$              2,600	$            (8,250)
Accounts receivable - Hawk Music Center		$            10,900	$          (19,150)
Accounts receivable - Modern Sounds		$            10,500	$          (29,650)
Accounts receivable - Country Tunes		$              8,300	$          (37,950)
Accounts receivable - Oldi Sounds		$              2,900	$          (40,850)
	$                     -	$            40,850

451 Sales Return and allowance
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Cash	$                    80		$                    80
Accounts Receivable - Music Warehouse	$              2,150		$              2,230
Accounts Receivable - Modern Sounds	$                 470		$              2,700
	$              2,700	$                     -

452 Sales Discounts
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Accounts receivable - Music Supply Store	$                    37		$                    37
Accounts receivable - Alto Music Center	$                    84		$                 121
Accounts receivable - Music warehouse	$                    81		$                 202
Accounts receivable - Hawk Music Center	$                 218		$                 420
	$                 420	$                     -

schedule of accounts receivable

Alto Music Center
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Sales	$         4,200		$             4,200
Cash		$         4,116	$                   84
Sales Discount		$              84	$                    -
	$        4,200	$        4,200

Country Tunes
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Sales	$         8,300		$             8,300
	$        8,300	$               -

Hawk Music Center
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Sales	$      10,900		$           10,900
Cash		$      10,682	$                 218
Sales Discount		$            218	$                    -
	$      10,900	$      10,900

Modern Sounds
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Sales	$      10,500		$           10,500
Sales Rerurn and allowance		$            470	$           10,030
	$      10,500	$            470

Music Supply Store
	Transactions		Debit/ (Credit)
Description	Debit	Credit	Debit
Opening Balance			$             1,850
Cash		$         1,813	$                   37
Sales Discount		$              37	$                    -
	$               -	$        1,850

Music Wearhouse
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Sales	$         6,200		$             6,200
Sales Rerurn and allowance		$         2,150	$             4,050
Cash		$         3,969	$                   81
Sales Discount		$              81	$                    -
	$        6,200	$        6,200

Oldies Sounds
	Transactions		Balance
Description	Debit	Credit	Debit/ (Credit)
Opening Balance			$             2,150
Cash		$         2,150	$                    -
Sales	$         2,900		$             2,900
	$        2,900	$        2,150

Total Sale Prior to returns and Discounts on April is $40850

Total Sales on Account is - $37730 (40850-2700-420)