sales journal and accounts receivable subsidiary ledger
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How to creat a sales journal and a Accounts Receivable Subsidiary Ledger.TRANSCRIPT
Sales Journal and Accounts Receivable Subsidiary Ledger Accounts
MJC Revised 5/2012 Page 1
Sales Journal
Page Number: 7
Account Debited
Invoi
ce
No. Terms
Post
Ref.
Cost of Goods Sold
Dr.
Merchandise
Inventory
Cr.
Accounts
Receivable
Dr.
Fees Earned
Cr.
Date
20X
X
1 DEC. 3 Love Thy Pets Inc., 1020 2/10,n/30 √ 1,500 2,500 1
2 8 White Puppy Pet Store 1021 1/10,n/30 √ 900 1,500 2
3 13 Jill’s Pet Store 1022 n/30 √ 360 600 3
4 24 Kitty and Cats Pet Store Inc. 1023 2/10,n/30 √ 1,560 2,600 4
5 28 Jill’s Pet Store 1024 1/10,n/30 √ 600 1,000 8
6 29 White Puppy Pet Store 1025 1/10,n/30 √ 300 500 6
7 30 Love Thy Pets Inc., 1026 2/10,n/30 √ 360 600 7
8 31 Kitty and Cats Pet Store Inc. 1027 2/10,n/30 √ 480 800 8
9 6,060 10,100 9
10 (1003) (5002) (1001) (4001) 10
Sales Journal and Accounts Receivable Subsidiary Ledger Accounts
MJC Revised 5/2012 Page 2
General Ledger Accounts R Receivable Subsidiary Ledger Accounts
Merchandise Inventory
1003
Date REF. DR. CR. Bal.
12/31 Purchases PJ 9 10,800 10,800
12/31 Sales SJ7 6,060
12/31 Returns GJ 5
Love Thy Pets Inc.,
Date Ref. Inv. DR. CR. Bal.
12/3 2/10,n/30 SJ7 1020 2,500 2,500
12/30 2/10,n/30 SJ7 1026 600 3,100
Fees Earned
4001
Date REF. DR. CR. Bal.
12/31 Purchases PJ 9 10,800 10,800
12/31 Sales SJ7 6,060
12/31 Returns GJ 5
Kitty and Cats Pet Store Inc,.
Date Ref. Inv. DR. CR. Bal.
12/14 2/10,n/30 SJ7 1023 2,600 2,600
12/26 Return GJ5 CM2 300 2,300
12/31 2/10,n/30 SJ7 1027 800 3,100
Cost of Goods Sold
5002
Date REF. DR. CR. Bal.
12/31 Sales SJ7 6,060 6,060
12/31 Returns GJ5 180 5,880
White Puppy Pet Store
Date Ref. Inv. DR. CR. Bal.
12/8 1/10,n/30 SJ7 1021 1,500 1,500
12/29 1/10,n/30 SJ7 1025 500 2,000
Accounts Receivable
1001
Date REF. DR. CR. Bal.
12/31 Sales SJ7 10,100 10,100
12/31 Freight CP6 100 10,200
12/31 Returns GJ 5 300 9,900
Jill’s Pet Store
Date Ref. Inv. DR. CR. Bal.
12/12 n/30 SJ7 1022 600 600
12/28 1/10,n/30 SJ7 1024 1,000 1,600
12/30 Freight PJ9 100 1,700
Sales Journal and Accounts Receivable Subsidiary Ledger Accounts
MJC Revised 5/2012 Page 3
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.
Sales Journal and Accounts Receivable Subsidiary Ledger Accounts
MJC Revised 5/2012 Page 4
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.