Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At the end of each month, Warton posts the end-of-month totals to the general ledger. July 2 Mary Mack $ 9,400 July 8 Eric Horner 11,900 July 10 Troy Wilson 14,200 July 14 Hong Jiang 21,300 July 20 Troy Wilson 12,000 July 29 Mary Mack 8,100 Total credit sales 76,900 Required: Post the amounts to the accounts receivable subsidiary ledger for each of these customers above. Post the end-of-month total to Accounts Receivable controlling T-account and a Sales T-account. Prepare a schedule of accounts receivable and prove (confirm) that its total equals the Accounts Receivable controlling account balance.
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At the end of the accounting period, a financial statement is prepared by every company, then at that time while preparing the financial statement, the company determines among its total receivable amount how much portion of receivables is collected by the company during that accounting period.
Accounts Receivable
The word “account receivable” means the payment is yet to be made for the work that is already done. Generally, each and every business sells its goods and services either in cash or in credit. So, when the goods are sold on credit account receivable arise which means the company is going to get the payment from its customer to whom the goods are sold on credit. Usually, the credit period may be for a very short period of time and in some rare cases it takes a year.
Warton Company posts individual sales to the accounts receivable subsidiary ledger immediately. At the end of each month, Warton posts the end-of-month totals to the general ledger.
| July 2 | Mary Mack | $ 9,400 |
|---|---|---|
| July 8 | Eric Horner | 11,900 |
| July 10 | Troy Wilson | 14,200 |
| July 14 | Hong Jiang | 21,300 |
| July 20 | Troy Wilson | 12,000 |
| July 29 | Mary Mack | 8,100 |
| Total credit sales | 76,900 |
Required:
- Post the amounts to the accounts receivable subsidiary ledger for each of these customers above.
- Post the end-of-month total to Accounts Receivable controlling T-account and a Sales T-account.
- Prepare a schedule of accounts receivable and prove (confirm) that its total equals the Accounts Receivable controlling account balance.
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