Easton Company Began Business on October 1

question 79

Essay

Easton Company began business on October 1. The sales journal, as it appeared at the end of the month, follows:
1. Open general ledger T-accounts for Accounts Receivable (No. 112) and Sales (No. 401) and an accounts receivable subsidiary T-account ledger with an account for each customer. Make the appropriate postings from the sales journal. Fill in the appropriate posting references in the sales journal above.
2. Prove the accounts receivable subsidiary ledger by preparing a schedule of accounts receivable.

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Definitions:

Quota Limit

A restriction on the amount or number of a particular good that can be imported or exported.

Ceiling Price

It is a legally imposed maximum price on a good or service, intended to prevent prices from rising above a certain level.

Demand Price

The maximum price at which a consumer is willing to buy a specific quantity of a good.

Binding Quota

A limit on the quantity of goods that can be imported or exported over a period, which cannot be exceeded.