EXERCISE 7-3

(a) & (b) General Ledger

Accounts Receivable
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  10,960
S 4,990 15,950
CR 8,030 7,920
G 220 7,700

Accounts Receivable Subsidiary Ledger

Fowler
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  2,060
S 1,600 3,660
CR 1,310 2,350

Sogard
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  4,820
S 800 5,620
CR 3,300 2,320
G 220 2,100

Giambi
Date Explanation Ref. Debit Credit Balance
Sept. 1 0
S 1,330 1,330
CR 380 950

Andino
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  2,640
CR 1,800 840
EXERCISE 7-3 (Continued)

Hurley
Date Explanation Ref. Debit Credit Balance
Sept. 1 Balance  1,440
S 1,260 2,700
CR 1,240 1,460

(c) MONTGOMERY COMPANY

Schedule of Customers
As of September 30, 2014

Fowler ....................................................................................... $2,350

Sogard ....................................................................................... 2,100
Giambi ....................................................................................... 950
Andino ....................................................................................... 840
Hurley ........................................................................................ 1,460
Total ................................................................................... $7,700

Accounts Receivable ............................................................... $7,700

EXERCISE 7-4

(a) $3,500 [$10,000 – ($4,000 + $2,500)].

(b) $12,000 [$10,000 + ($9,000 + $7,000 + $8,500) – ($8,000 + $2,500 + $9,000) – $3,000].
(c) Bixler ($4,000 + $9,000 – $8,000) $ 5,000
Cuddyer ($2,500 + $7,000 – $2,500 – $3,000) 4,000
Freeze ($3,500 + $8,500 – $9,000) 3,000
$12,000
(d) The sales return ($3,000) would be recorded in the general journal instead of
special journal.

EXERCISE 7-5

(a) $4,375 [$9,250 – ($3,000 + $1,875)].

(b) $10,750 [$9,250 + ($6,750 + $5,250 + $6,375) – ($6,000 + $1,875 + $6,750) – $2,250].
(c) Hale ($3,000 + $6,750 – $6,000) $3,750
Janish ($1,875 + $5,250 – $1,875 – $2,250) 3,000
Valdez ($4,375 + $6,375 – $6,750) 4,000
$10,750
(d) The purchase return ($2,250) would be recorded in the general journal instead of
special journal.