Fagin Company uses special journals to record transactions. Below are the sales journal and cash receipts journal for Fagin in the first part of August.Required: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 No.PRAccounts Receivable Dr.Sales Cr.Cost of Goods Sold Dr.Inventory Cr.8/1Pip Co.1200?6,9003,0008/1Rivers Co.1201?4,2001,9008/3Lloyd Co.1202?7,2004,0008/6Carmen

Question

Co.1203?2,5001,200?Totals??20,80010,100Cash Receipts JournalDateAccount CreditedExplanationPRCash Dr.Sales Discount Dr.Accounts Receivable Cr.Sales Cr.Other Accounts Cr.Cost of Goods Sold Dr.Inventory Cr.8/2SalesCash sales?10,000??10,000?5,5008/3NotesBank loan?12,000???12,000?8/5Pip Co.Invoice 8/1?6,7621386,900???8/9Lloyd Co.Invoice 8/3?7,0561447,200????Totals??35,81828214,10010,00012,0006,500

What will be an ideal response?

Answer 1

a.