Cassandra Wilson Company uses a six-column cash receipts journal with the following columns.
Sales Discounts (Dr.)
Accounts Receivable (Cr.)
Sales Revenue (Cr.)
Other Accounts (Cr.)
Cost of Goods Sold (Dr.)
Cash receipts transactions for the month of July 2012 are as follows.
Cash sales total $5,800 (cost, $3,480).
Received a check for $6,370 from Jeltz Company in payment of an invoice dated June
26 for $6,500, terms 2/10, n/30.
Cassandra Wilson, the proprietor, made an additional investment of $5,000 in cash in the business.
Cash sales total $12,519 (cost, $7,511).
Received a check for $7,275 from R. Eliot & Co. in payment of a $7,500 invoice dated
July 3, terms 3/10, n/30.
Received an advance of $700 cash for future services.
Cash sales total $15,472 (cost, $9,283).
Received a check for $5,880 from Beck Company in payment of $6,000 invoice dated
July 13, terms 2/10, n/30.
Cash sales total $17,660 (cost, $10,596).
Received cash of $200 on interest earned for July.
(a) Journalize the transactions in the cash receipts journal.
(b) Contrast the posting of the Accounts Receivable and Other Accounts columns.