Sales Journal And Accounts Receivable Subsidiary Ledger

Sales Journal and Accounts Receivable Subsidiary Ledger Accounts

Sales Journal Page Number: 7

1 2 3 4 5 6 7 8 9 10

Date 20X X DEC. 3 8 13 24 28 29 30 31

Account Debited Love Thy Pets Inc., White Puppy Pet Store Jill’s Pet Store Kitty and Cats Pet Store Inc. Jill’s Pet Store White Puppy Pet Store Love Thy Pets Inc., Kitty and Cats Pet Store Inc.

MJC Revised 5/2012

Invoi ce No. 1020 1021 1022 1023 1024 1025 1026 1027

Terms 2/10,n/30 1/10,n/30 n/30 2/10,n/30 1/10,n/30 1/10,n/30 2/10,n/30 2/10,n/30

Post Ref. √ √ √ √ √ √ √ √

Cost of Goods Sold Dr. Merchandise Inventory Cr. 1,500 900 360 1,560 600 300 360 480 6,060 (1003) (5002)

Accounts Receivable Dr. Fees Earned Cr. 2,500 1,500 600 2,600 1,000 500 600 800 10,100 (1001) (4001)

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Sales Journal and Accounts Receivable Subsidiary Ledger Accounts

General Ledger Accounts

Date 12/31 12/31 12/31

Merchandise Inventory 1003 REF. DR. CR. Purchases PJ 9 10,800 Sales SJ7 6,060 Returns GJ 5

Date 12/31 12/31 12/31

Fees Earned 4001 REF. DR. Purchases PJ 9 10,800 Sales SJ7 Returns GJ 5

Date 12/31 12/31

Cost of Goods Sold 5002 REF. DR. CR. Sales SJ7 6,060 Returns GJ5 180

CR.

Bal. 10,800

Bal. 10,800

6,060

Accounts Receivable 1001 Date REF. DR. CR. 12/31 Sales SJ7 10,100 12/31 Freight CP6 100 12/31 Returns GJ 5 300

MJC Revised 5/2012

R

Bal. 6,060 5,880

Bal. 10,100 10,200 9,900

Receivable Subsidiary Ledger Accounts

Date 12/3 2/10,n/30 12/30 2/10,n/30

Love Thy Pets Inc., Ref. Inv. DR. SJ7 1020 2,500 SJ7 1026 600

CR.

Bal. 2,500 3,100

Kitty and Cats Pet Store Inc,. Date Ref. Inv. DR. CR. 12/14 2/10,n/30 SJ7 1023 2,600 12/26 Return GJ5 CM2 300 12/31 2/10,n/30 SJ7 1027 800

Bal. 2,600 2,300 3,100

White Puppy Pet Store Date Ref. Inv. DR. 12/8 1/10,n/30 SJ7 1021 1,500 12/29 1/10,n/30 SJ7 1025 500

CR.

Bal. 1,500 2,000

CR.

Bal. 600 1,600 1,700

Date 12/12 n/30 12/28 1/10,n/30 12/30 Freight

Jill’s Pet Store Ref. Inv. DR. SJ7 1022 600 SJ7 1024 1,000 PJ9 100

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Sales Journal and Accounts Receivable Subsidiary Ledger Accounts Systematic Instructions Step 1. Start with the basic descriptions of the journal entries. 12/3 Morrison Pet Supply Company sold pet supplies to Love Thy Pets Inc., in the amount of $2,500 with a cost of $1,500 on invoice 1020. Terms of sale is 2% discount if invoice is paid in the first 10 days or net price (full invoice price) within 30 days. Terms of sale are 2/10, n/30. 12/8 Morrison Pet Supply Company sold pet supplies to White Puppy Pet Store in the amount of $1,500 with a cost of $900 on invoice 1021. Terms of sale are 1/10, n/30. 12/12 Morrison Pet Supply Company sold pet supplies to Jill’s Pet Store in the amount of $600 with a cost of $360 on invoice 1022. Terms of sale are n/30. 12/24 Morrison Pet Supply Company sold pet supplies to Kitty and Cats Pet Store Inc., in the amount of $2,600 with a cost of $1,560 on invoice 1023. Terms of sale are 2/10, n/30. 12/26 Kitty and Cats Pet Store Inc., returned pet supplies to Morrison Pet Supply Company in the amount of $300 with a cost of $180 on credit memo 2. 12/28 Morrison Pet Supply Company sold pet supplies to Jill’s Pet Store in the amount of $1,000 with a cost of $600 on invoice 1024. Terms of sale are 1/10, n/30. 12/29 Morrison Pet Supply Company sold pet supplies to White Puppy Pet Store in the amount of $500 with a cost of $300 on invoice 1025. Terms of sale are 1/10, n/30. 12/30 Morrison Pet Supply Company sold pet supplies to Love Thy Pet Inc., in the amount of $600 with a cost of $360 on invoice 1026. Terms of sale are 2/10, n/30. 12/30 Morrison Pet Supply Company paid the freight in advance for Jill’s Pet Store and will add it to their accounts receivable to be paid when the invoice is paid. 12/31 Morrison Pet Supply Company sold pet supplies to Kitty and Cats Pet Store Inc., in the amount of $800 with a cost of $480 on invoice 1027. Terms of sale are 2/10, n/30.

MJC Revised 5/2012

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Sales Journal and Accounts Receivable Subsidiary Ledger Accounts Step 2. Place the amount of the sales in the left hand column that reads Accounts Receivable Dr. /Fees Earned Cr. then place the cost that Morrison paid their suppliers for the product in the next column to the right that reads Cost of Goods Sold Dr. /Merchandise Inventory Cr. Place the date of the sale in the date column and the company name for which the supplies were sold in the column that reads account debited. Place the invoice number in the column that reads invoice number if an invoice number is provided for the sale. Place the terms of the sale in the terms column if terms are provided for the sale. Step 3. Copy the amount of the sale of each individual line item into the subsidiary ledger “only” at the time of the sale do not post to the control accounts, Accounts Receivable and Fees Earned, until the end of the month. Place a check mark in the reference column after the amount is posted. In the subsidiary ledger account you will post the amount and keep a running total of how much each individual company owes your company. After each individual amount is posted you will place SJ, Sales Journal, and the page number in the reference column of the ledger to denote where the entry came from in the first place. Also make sure to place the date of the sale in the date column. If invoice numbers are supplied for a problem then make sure to enter them into the column provide for invoice numbers. Step 4. As in the example on page one any return or allowances of goods by a customer should be journalized in the general journal and posted to the accounts receivable subsidiary ledger and the control accounts in the general ledger. This item will be posted at the time it occurs in the accounts receivable subsidiary ledger and at the end of the month for the control accounts. Step 5. As in the example on page one any advance payments of freight for a customer should be journalized in the cash payments journal and posted to the accounts receivable subsidiary ledger and the control accounts in the general ledger. This item will be posted at the time it occurs in the accounts receivable subsidiary ledger and at the end of the month for the control accounts. Step 6. At the end of the financial period (month, biannual, year or fiscal period) total down the columns for “Accounts Receivable Dr.—Fees Earned Cr.” and “Cost of Goods Sold Dr.—Merchandise Inventory Cr.” Then post those ending balances to the control accounts named. Make sure to list in brackets the account numbers as posting references under the double underlined totals. The column headings tell you which account to debit and which account to credit for posting purposes.

Note: Posting is the act of coping an amount from the journal to the individual ledger account. Posting References (Ref. or F) are account numbers or the abbreviation for the journal and the page number for the journal. Totaling all of the amounts in a journal column is called footing a column. General Journal columns are not footed.

MJC Revised 5/2012

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