Accounts Receivable of Montgomery Company

On September 1, the balance of the Accounts Receivable control account in the general ledger of Montgomery Company was $10,960. The customers’ subsidiary ledger contained account balances as follows: Hurley $1,440, Andino $2,640, Fowler $2,060 and Sogard $4,820. At the end of September, the various journals contained the following information. Sales journal: Sales to Sogard $800, to Hurley $1,260, to Giambi $1,330, and to Fowler $1,600.
Cash receipts journal: Cash received from Fowler $1,310, from Sogard $3,300, from Giambi $380, from Andino $1,800, and from Hurley $1,240.
General journal: An allowance is granted to Sogard $220.

Instructions
(a) Set up control and subsidiary accounts and enter the beginning balances. Do not construct the journals.
(b) Post the various journals. Post the items as individual items or as totals, whichever would be the appropriate procedure. (No sales discounts given.)
(c) Prepare a schedule of accounts receivable and prove the agreement of the controlling account with the subsidiary ledger at September 30, 2017.

SOLUTION

(a) & (b) General Ledger

Accounts Receivable
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

Balance


S
CR
G

4,990

8,030 220

10,960
15,950
7,920 7,700

Accounts Receivable Subsidiary Ledger

Fowler
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

Balance


S
CR

1,600

1,310

2,060 3,660 2,350

Sogard
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

Balance


S
CR
G

800

3,300 220

4,820
5,620
2,320
2,100

Giambi
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

S
CR

1,330

380

0 1,330 950

Andino
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

Balance


CR

1,800

2,640 840

Hurley
Date

Explanation

Ref.

Debit

Credit

Balance
Sept.1

Balance


S
CR

1,260

1,240

1,440 2,700 1,460

(c)
MONTGOMERY COMPANY
Schedule of Accounts Receivable
As of September 30, 2017

Fowler $2,350 Sogard 2,100 Giambi 950