One of the customer accounts from the accounts receivable ledger for Toulouse Company is shown below.

One of the customer accounts from the accounts receivable ledger for Toulouse Company is shown below.


Loutrec Company
Date Explanation Debit Credit Balance
2016
June 1 Balance 160
3 Sales Slip 1307 2,600 2,760
15 CM 202 160 2,600
20 1,800 800

Explanation

June 3 - Sold merchandise in the amount of $2,600 on credit using sales slip 1307.
June 15 - Sales return or allowance in the amount of $160 issued using CM 202.
June 20 - Collected $1,800 cash on account.

 If a firm had sales of $50,000 during a period and sales returns and allowances of $4,000, its net sales were

$46,000. Explanation$50,000 - $4,000 = $46,000

After all postings have been made, the total of the schedule of accounts receivable should equal

the balance of the Accounts Receivable account in the general ledger.

In a sales journal used to record taxable sales, the total of the Accounts Receivable column should equal

the sum of the totals of the Sales Tax Payable column and the Sales column.

The amount of the trade discount taken by the customer is recorded as a(n)

sales recorded net of trade discounts.

A wholesale firm made sales with the following list prices and trade discounts. Calculate the amount the firm will use to record each sale in the sales journal.

Explanation

A. $2,400 − $1,200 = $1,200
B. $4,000 − $1,000 = $3,000
$3,000 − $600 = $2,400