Question

Following is information from Fredrickson Company for its initial month of business.
  

	Credit Sales					Cash Collections
Jan. 10	Stern Company	$	4,400		Jan. 20	Stern Company	$	2,200
19	Diaz Brothers		1,800		28	Diaz Brothers		1,800
23	Rex Company		2,800		31	Rex Company		1,456

  
1. Journalize the above transactions in the accounts receivable subsidiary ledger.
2. Journalize the accounts receivable balance listed in the general ledger at month’s end.

ournalize the above transactions in the accounts receivable subsidiary ledger.

	ACCOUNTS RECEIVABLE LEDGER Stern Company Date Debit Credit Balance Diaz Brothers Date Debit Credit Balance Rex Company Date Debit Credit Balance

Journalize the accounts receivable balance listed in the general ledger at month’s end.

	GENERAL LEDGER Accounts Receivable Date Debit Credit Balance

Answer 1

ACCOUNTS RECEIVABLE LEDGER
Stern Company
Date	Debit	Credit	Balance
Jan. 10		$4,400	$4,400
Jan. 20	$2,200		$2,200 [$4,400 - $2,200]
Diaz Brothers
Date	Debit	Credit	Balance
Jan. 19		$1,800	$1,800
Jan. 28	$1,800		$0 [$1,800 - $1,800]
Rex Company
Date	Debit	Credit	Balance
Jan. 23		$2,800	$2,800
Jan. 31	$1,456		$1,344 [$2,800 - $1,456]

.

.

GENERAL LEDGER
Accounts Receivable
Date	Debit	Credit	Balance
Jan. 31		$9,000 [Refer note 1]	$9,000
Jan. 31	$5,456 [Refer note 2]		$3,544 [$9,000 - $5,456]

Note 1

Total accounts receivables = Total credit sales = $4,400 + $1,800 + $2.800 = $9,000

Note 2

Total cash collections = $2,200 + $1,800 + $1,456 = $5,456