EX 5-5 Identify transactions in accounts receivable subsidiary ledger

The debits and credits from three related transactions are presented in the following customer’s account taken from the accounts receivable subsidiary ledger:



NAME Mission Design
ADDRESS 1319 Elm Street
Date Item
Post.
Ref. Debit Credit Balance
2014
Apr. 3 R44 740 740
6 J11 60 680
24 CR81 680 —



Describe each transaction, and identify the source of each posting.


Answer:
Apr.
3. Provided service on account; posted from revenue journal page 44.
6. Granted an invoice adjustment or corrected an error related to sale of April 3; posted from general journal page 11. This does not represent a collection of cash, since the credit was not posted from the cash receipts journal.
24. Received cash for balance due; posted from cash receipts journal page 81.