Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year: May 1 Received $2,450 cash from L. Reilly in payment of April 22 invoice of $2,500, less cash discount. 4 Received $1,635 cash in payment of $1,500 note receivable and interest of $135. 7 Received $3,724 cash from K. L. Shannon in payment of April 29 invoice of $3,800, less cash discount. 8 Sold merchandise on account to D. Padilla, invoice no. 272, $5,500. 16 Cash sales for first half of May, $3,850. 17 Received cash from D. Padilla in payment of invoice no. 272, less cash discount. 20 Received $550 cash from L. N. Salas in payment of April 16 invoice, no discount. 21 Sold merchandise on account to R. O. Wilcox, invoice no. 273, $950. 24 Received $260 cash refund for return of defective equipment that was originally bought for cash. 27 Sold merchandise on account to R. Jarvis, invoice no. 274, $520. 31 Cash sales for second half of May, $2,790. Required: 1. Journalize the transactions for May in the cash receipts journal and total the columns. Assume the periodic inventory method is used.If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. Extracted text: CASH RECEIPTS JOURNAL PAGE SALES ACCOUNTS OTHER ACCOUNT POST. CASH DISCOUNTS RECEIVABLE SALES ACCOUNTS DATE CREDITED REF. DEBIT DEBIT CREDIT CREDIT CREDIT 20-- May 1 L. Reilly 4 Notes Receivable Interest Income 7 K. L. Shannon 16 17 D. Padilla 20 L. N. Salas 24 Equipment 31|- 31 Totals Journalize the transactions for May in the sales journal and total the columns.Extracted text: SALES JOURNAL PAGE ACCOUNTS INV. POST. RECEIVABLE DR. DATE NO. CUSTOMER'S NAME REF. SALES CR. 20-- May 8 272 D. Padilla 21 273 R. O. Wilcox 27 274 R. Jarvis 31 Total 2. Prove the equality of the debit and credit totals. If required, round your answers to the nearest cent. EQUALITY OF DEBITS AND CREDITS DEBITS CREDITS Sales Discounts debit Other Accounts credit Cash debit Accounts Receivable credit Sales credit Total Total

Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and...

Preston Company sells candy wholesale, primarily to vending machine operators. Terms of sales on account are 2/10, n/30, FOB shipping point. The following transactions involving cash receipts and sales of merchandise took place in May of this year:

May	1	Received $2,450 cash from L. Reilly in payment of April 22 invoice of $2,500, less cash discount.
	4	Received $1,635 cash in payment of $1,500 note receivable and interest of $135.
	7	Received $3,724 cash from K. L. Shannon in payment of April 29 invoice of $3,800, less cash discount.
	8	Sold merchandise on account to D. Padilla, invoice no. 272, $5,500.
	16	Cash sales for first half of May, $3,850.
	17	Received cash from D. Padilla in payment of invoice no. 272, less cash discount.
	20	Received $550 cash from L. N. Salas in payment of April 16 invoice, no discount.
	21	Sold merchandise on account to R. O. Wilcox, invoice no. 273, $950.
	24	Received $260 cash refund for return of defective equipment that was originally bought for cash.
	27	Sold merchandise on account to R. Jarvis, invoice no. 274, $520.
	31	Cash sales for second half of May, $2,790.

Required:

1. Journalize the transactions for May in the cash receipts journal and total the columns. Assume the periodic inventory method is used.
If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.

CASH RECEIPTS JOURNAL<br>PAGE<br>SALES<br>ACCOUNTS<br>OTHER<br>ACCOUNT<br>POST.<br>CASH<br>DISCOUNTS<br>RECEIVABLE<br>SALES<br>ACCOUNTS<br>DATE<br>CREDITED<br>REF.<br>DEBIT<br>DEBIT<br>CREDIT<br>CREDIT<br>CREDIT<br>20--<br>May 1 L. Reilly<br>4 Notes Receivable<br>Interest Income<br>7 K. L. Shannon<br>16<br>17 D. Padilla<br>20 L. N. Salas<br>24 Equipment<br>31|-<br>31 Totals<br>Journalize the transactions for May in the sales journal and total the columns.<br>

Extracted text: CASH RECEIPTS JOURNAL PAGE SALES ACCOUNTS OTHER ACCOUNT POST. CASH DISCOUNTS RECEIVABLE SALES ACCOUNTS DATE CREDITED REF. DEBIT DEBIT CREDIT CREDIT CREDIT 20-- May 1 L. Reilly 4 Notes Receivable Interest Income 7 K. L. Shannon 16 17 D. Padilla 20 L. N. Salas 24 Equipment 31|- 31 Totals Journalize the transactions for May in the sales journal and total the columns.

SALES JOURNAL<br>PAGE<br>ACCOUNTS<br>INV.<br>POST.<br>RECEIVABLE DR.<br>DATE<br>NO.<br>CUSTOMER'S NAME<br>REF.<br>SALES CR.<br>20--<br>May 8<br>272<br>D. Padilla<br>21<br>273<br>R. O. Wilcox<br>27<br>274<br>R. Jarvis<br>31<br>Total<br>2. Prove the equality of the debit and credit totals. If required, round your answers to the nearest cent.<br>EQUALITY OF DEBITS AND CREDITS<br>DEBITS<br>CREDITS<br>Sales Discounts debit<br>Other Accounts credit<br>Cash debit<br>Accounts Receivable credit<br>Sales credit<br>Total<br>Total<br>

Extracted text: SALES JOURNAL PAGE ACCOUNTS INV. POST. RECEIVABLE DR. DATE NO. CUSTOMER'S NAME REF. SALES CR. 20-- May 8 272 D. Padilla 21 273 R. O. Wilcox 27 274 R. Jarvis 31 Total 2. Prove the equality of the debit and credit totals. If required, round your answers to the nearest cent. EQUALITY OF DEBITS AND CREDITS DEBITS CREDITS Sales Discounts debit Other Accounts credit Cash debit Accounts Receivable credit Sales credit Total Total

Jun 11, 2022

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