December 10. Be sure to enter the note received from the president to the correct account.
December 13. For stock withdrawn for use of business, make entry in the general journal.
December 15. Transfer through the general journal the claim of the Automatic Pencil Sharpener Co. to their account in the sales ledger, taking into consideration the sales discount to be allowed and the purchase discount to be taken. Remember to record these amounts in the proper columns. The balance of the latter account will be offset by the credit from the cash receipts journal.
XX
| Dec. | |
| 16. | Bought from American Kardex Co., 3/10, n/30, |
| $629.50 (A), and $350.40 (B). | |
| Bought on account of the Yonkers Carpet Works, n/90, | |
| carpets and floor materials for showrooms. They charged | |
| $890 for the carpets, etc., and $125 for labor in laying | |
| them, with freight prepaid by them and charged to the | |
| company of $22.80. | |
| Returned to the Protectograph Co. $258 (B). | |
| Gave Apex Office Supply Co. 30-day note at 6%, | |
| for bill of December 6, less 1%. | |
| The Peerless Motor Co. paid their bill of December 6, less 1%. | |
| 17. | Sold Franklin Moffit Co., 1/10, n/30, $987.40 (A), |
| and $1,642.70 (B), with prepaid freight charged them $62.15. | |
| Paid in-freight and cartage bills to date $569.47. | |
| 19. | Bought of American Duplicator Co. $4,897 (A), n/60, |
| with prepaid freight $297.69. | |
| Sold Willis, Dickson, Inc., n/10, $892.50 (A), and $274.90 (B). | |
| The Clark & Smith note was paid with interest. | |
| Browne Morse Co. gave the company a 30-day 6% note | |
| for the bill of December 7, less 1%. | |
| Drew from stock for completing showrooms, furnishings | |
| $2,790 (A), and $650 (B). | |
| Hall, Walter & Co. paid the company $100 for the use | |
| of one of the motor trucks for the week. | |
| Alexander, Hill & Co. paid their bill of December 12, less 2%. | |
| Gave Dictation Devices Co. $2,500, 30-day note at 6% | |
| and the balance in cash, in settlement of invoice | |
| of December 9, less 1%. | |
| Paid note due at bank today. | |
| 20. | Sold Sundry Customers to date receiving full cash payments |
| $2,447.50 (A), and $1,679.35 (B). | |
| Sold Yonkers Carpet Works Co., 1/10, n/30, $889.70 (A), | |
| and $632.40 (B). | |
| Paid American Banking Machine Co. $5,000 on account. | |
| 21. | Returned to American Banking Machine Co. $289.50 (A), |
| and $186.70 (B), of invoice of December 14. | |
| The company accepted the draft, to apply on account, | |
| drawn by the American Kardex Co., at 60 days from | |
| December 18, for $2,500. | |
| Paid Filing Systems & Cabinet Co. $2,500 on account. | |
| 22. | Bought from Filing Systems & Cabinet Co., 3/10, n/30, |
| $3,695 (A), and $4,272 (B), with prepaid freight | |
| charges of $116.74. | |
| Sold Clark & Smith, 2/10, n/60, $1,462.80 (A), | |
| and $1,937.60 (B). | |
| Hall, Walter & Co. paid $1,000 on account. | |
| Browne Morse Co. returned goods $197.60 (A), | |
| and $59.70 (B). | |
| 23. | Word was received that one of our Sundry Customers has |
| gone into the hands of a receiver, owing $490, and | |
| settlement with creditors was made on the basis of 40% | |
| of all claims, cash being received for that amount. | |
| Bought of Library Bureau, 1/10, n/30, $2,897 (B). | |
| Sold Alexander, Hill & Co., 1/10, n/30, $1,785.90 (A), | |
| and $2,476.80 (B). | |
| Paid Library Bureau $3,000 on account. | |
| Browne Morse Co. paid balance of their bill of December 13, less 1%. | |
| 24. | The company discounted its note at the Harding National Bank |
| for 60 days at 6%, $5,000. | |
| Paid balance on American Banking Machine Co. bill of | |
| December 14, less 3%. | |
| Bought of Yawman & Erbe Mfg. Co., 2/5, n/20, $4,567.90 (A), | |
| and $976.50 (B). | |
| Received on cash sales $458.60 (A), and $1,124.70 (B). | |
| Received a check from Willis, Dickson, Inc., for $5,000. | |
| Paid Yawman & Erbe Mfg. Co. $5,000. | |
| Standard Truck Co. gave a 30-day note at 6% for bill of | |
| December 14, less 1%. | |
| 27. | We called to the attention of Willis, Dickson, Inc. |
| an undercharge of $100 in the bill of December 19 | |
| in the Department B sale. | |
| Returned merchandise to Sundry Creditors $1,910 (A), | |
| and $897.50 (B). | |
| Sundry Customers returned goods $619 (A), and $1,490 (B). | |
| Paid advertising $2,000. | |
| Paid cash for purchases $4,209 (A), and $2,010.70 (B). | |
| Franklin Moffit Co. paid $5,000 on account. | |
| The Willis, Dickson, Inc. draft was given to the | |
| bank for collection. | |
| 28. | The Willis, Dickson, Inc., draft was sent back because |
| of insufficient funds. Protest fees paid by the bank | |
| and charged to the company were $2.50. | |
| Sold Sundry Customers, n/30, $5,196.40 (A), and $8,927.30 (B). | |
| Paid the American Kardex Co. bill of December 16, less 3%. | |
| Received payment from Clark & Smith for bill of December 22 less 2%. | |
| Paid the Filing System & Cabinet Co.’s bill of December 22, less 3%. |
Instructions
December 16. Record the purchase made from the Yonkers Carpet Works in the proper column of the general journal. Charge Sales General Expense.
December 19. Credit the income received for the use of the motor truck to Sales General Expense.
December 23. Refer to [page 411] of the text as to the handling of the balance of the firm’s claim against the bankrupt customer.
December 24. Cash sales will be recorded in the sales journal and included in the debit to Accounts Receivable account at time of summary. To offset this inflated debit, at the time cash sales are recorded also in the cash book the amount will be entered there in the Accounts Receivable column—not the General Ledger—and will thus be included in the credit to the Accounts Receivable account.