MBS544 Accounting Processes

a) Record the transactions in the special journals in the following order: sales journal, purchases journal, cash receipts, cash payments and general journal. You will need to use the general journal for more adjusting entries coming up, so make sure you leave room. The business uses sales and purchases journals for inventory transactions on credit only. Returns are processed through the general journal. (Remember that special journals replace the general journal, so transactions will be recorded in a special journal or the general journal but not both). In the sales journal, you will need a column for Sales, GST Collected and Accounts Receivable. In the purchases journal, you will need columns for Purchases, GST Paid and Accounts Payable. The Cash Receipts and Cash Payments are multiple-column journals and require columns relevant to this particular business. An example of a suitable format for these journals is provided on pages 379 & 384 of your text.   Prepare the accounts receivable control account as it would appear in the general ledger at the end of the reporting period, together with the related subsidiary ledger. Ensure that the individual customer balances agree with the total of the control account. Provide the accounts payable control account as per the general ledger at the end of the financial year and the subsidiary ledger and ensure that the individual supplier balances agree with the total of the control account. Prepareany adjusting or correcting entries required as at 30 June 2020 in relation to the additional information provided above. Any entries necessary in respect of depreciation for each class of non-current assets discussed in the information given for the year ended 30 June 2020 Scallion Ltd uses the allowance method of accounting for bad debts. One percent of net sales is estimated to be uncollectable for the year ended 30 June 2020 (round amount to nearest whole $). On 30 June, Scallion Ltd was notified by the lawyers of Croft Ltd that they had been declared bankrupt and were unable to pay the amount owing. This debt was subsequently written off.