Morris Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Morris. Prepare the following:a. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger.b. Open an Accounts Receivable controlling T-Account. Post the end-of the month totals that affect the Accounts Receivable account only.c. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.Sales JournalDateAccount DebitedInvoice NumberPRAccounts Receivable Dr. Sales Cr.Cost of Goods Sold Dr. Inventory Cr.12/1Wazoo Co.1200?6,9003,50012/1Fargo Co.1201?3,4001,80012/3Jansen Co.1202?7,2004,00012/6Marsh
Co.1203?3,0001,500?Totals??20,50010,800Cash Receipts JournalDateAccount CreditedExplanationPRCash Dr.Sales Discount Dr.Accounts Receivable Cr.Sales Cr.Other Accounts Cr.Cost of Goods Sold Dr. Inventory Cr.12/2SalesCash sales?12,000??12,000?6,50012/3Notes PayableBank loan?15,000???15,000?12/5Wazoo Co.Invoice 12/1?6,7621386,900???12/6Fargo Co.Invoice 12/1?3,332683,400????Totals??37,09420610,30012,00015,0006,500
What will be an ideal response?
a.
WazooFargoJansenMarsh
| 6,900 | 6,900 | 3,400 | 3,400 | 7,200 | ? | 3,000 | ? |
| 0 | ? | 0 | ? | 7,200 | ? | 3,000 | ? |
| Accounts Receivable | |
| 20,500 | 10,300 |
| 10,200 | ? |
c.
| Morris Company Schedule of Accounts Receivable December 6 | |
| Jansen Co. | $ 7,200 |
| Marsh Co. | 3,000 |
| Total accounts receivable | $10,200 |
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