On December 1, the Accounts Receivable Control Account Balance in the General

question 212

Essay

On December 1, the accounts receivable control account balance in the general ledger of Mitus Company was $9,000. The accounts receivable subsidiary ledger contained the following detailed customer balances: Acme $1,500, Baker $2,100, Fare $2,600, and Grote $2,800. The following information is available from the company's special journals for the month of December:
Cash Receipts Journal: Cash received from Fare $1,900, from Acme $2,100, from Santos $1,700, and from Baker $1,800.
Sales Journal: Sales to Santos $3,300, to Fare $1,700, to Acme $2,300, and to Grote $2,400.
Additionally, Fare returned defective merchandise for credit for $900. Acme returned defective merchandise for $600 which he had purchased for cash.
Instructions
(a) Using T-accounts for Accounts Receivable Control and the detail customer accounts, post the activity for the month of December.
(b) Reconcile the accounts receivable control account with the subsidiary ledger by preparing a detail list of customer balances at December 31.

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Definitions:

Crossed The Chasm

A concept describing the transition of a technology product from early adoption to widespread acceptance and use in the mainstream market.

Bottom-up Analysis

An approach that starts with specific details and flows upwards to identify broader trends and patterns.

Top-down Analysis

An approach that starts with the broader economy or market before analyzing specific sectors or companies.

Predicted Total Sales

An estimation of the total amount of sales revenue a business expects to earn over a specified future period.