Problem 7-7A Callahan Distributors, which uses the perpetual inventory system and makes all credit s

Problem 7-7A Callahan Distributors, which uses the perpetual inventory system and makes all credit sales on berms of 1/10, n/30, cmpletnd the following transacticns during July: Using all the jounak, posting balaning the ledgers Jul 2 Isaed invoice no.913 oe sale on acceount to Ishikawa Inc, $24,600 Callahan's cost of this imventoey was $10,800. Credit sales terms ane 1/10, n/30 Purchased inventory on credit serms of 3/10, n/60 from Nakkach Corp, 6 Toral Accounts Receivable $2,976 total Accounts Payables $26.152 $14,802. The invoice was dated July 3 Sold inventory for cash, S62 (oost, $2880) Issed cheque no. 532 to purchase furniture foe cash, $13,110 Collected interest revenue of S6600 Iswed invoice no. 914 soe sale on account to Bell Ltd, 533,300 (ct, $13,860 Cedit sales serms are 1/10, n/30. Purchased inventory for cash, $6.858, iseuing cheque no. 533 Recived cash frum lshikawa Inc. in full swettlement of its account receiv- 12 able from the sale cn July 2 Issued cheque no. 534 to pay Nakkadh Corp the net amount owed from July 3 (Round to the nearest dollar.) 13. 13 Purchased supplies on accuunt from Manley Inc, 58,646. Terms wese net end of month The involce was dated July 13 15 Sold inwentory on account to M. O. Beown, issuing invoice no. 915 for- 3,990 (et, 51,440). Credia sales lerms are 1/10, n/30 17 Issd cedit memo to M. O. Brown for $3,990 for merchandise smt in eror and returned by Brown Also accounted for receipt of the imvembory 15 Issued inwolce no.916 Sor credit sale to Ishikawa Inc, 52142 (cost, 5762). Credit sales terms ane 1/10, n/30 42 Chapter 7 Accounting Information Systems Received $32,967 from Bell Ltd in full settlement of its account recelv- able from July 9 19 20 Purchased inventory on credit berns of net 30 from Burgess Distributing Ltd, $12.282 The involce was dated July 20 Purchased furniture on credit terms of 3/10, n/60 from Nakkach Corp S3,80. The imoice was dated July 22 Issued cheque no 535 to pay for insurance coverage, debiting Prepaid Insarance for S6 000 22 77 24 Sold supplies to an employee for cash of $324, which was the cost of the supplies Issaed cheque no. 536 to pay utilities, 56,718 78 Purchased inventory on credit terms of 2/10, n/30 fsom Manley Inc., s8050. The imoice date was July 28, 294 Retuned damaged inventory to Manley Inc, issuing a debit memo for $4,050 Sold goods cn accuunt to Bell Ltd, issuing imvoice no. 917 for $2906 cost, S1,320. Credit sales terms are 1/10, n/30. Issaed cheque no 537 to pay Manley Inc. $2646 Recived cash in full on account from Ishikawa Inc 30 35 Issued cheque no 538 to pay meethly salaries of $14,082. 31 Required 1. Open the following three-column gemeral ledger accounts using the account numbers givenc Cash 11: Sales Revmue 413 Accounts Receivable 112 Sales Discounts 412 Sales Retums and Allowances Supplies 413 116 Interest Revenae. 112 Prepaid Insurance Inventory 118 Cost of Goods Sold. Salaries Expense Furniture Accounts Payable Unlities Expense. 211 54. 2. Open these accounts in the subsidiary ledgers accounts receivable subidiary lodger Bell Lad.M.C. Brown and bhikawa Incaccounts payahle subsidiary lndg-Nakkach Corp, Manley lInc, and Burgss Distributing Ltd. 3 Enter the transactions in a sales journal (Page 7), a cash receipts journal (Page 5), a purchases joumal (Page 10, a cash payments journal (Page R, and a peneral journal (Page 6, as appeopriate. 4. Post daily to the accounts receivable subsidiary ledger and to the accounts pay able subsidiary ledger. Post the individaal amounts to the general ledger on the date recorded in the journal, post column totals to the general ledger on July 31. 5. Total each column of the special journals Show that sotal debits equal total credits in each joumal 6 Balance able in the Accounts Payable in the general ledger reconcile the accounts receivable subsidiary ledger and Accounts Receiv Eral ledpr, De the same for the accounts payable sbsidiary ledger and Palalous 7RA 2a

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