Question

Presented below is information for Metlock Company.

1. Beginning-of-the-year Accounts Receivable balance was $22,700.
2. Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts.
3. Collections on accounts receivable during the year were $82,300.
Prepare (summary) journal entries to record the items noted above

Answer 1

The Journal entries are as follows:

(1) For Opening Balance Journal entry Not Required

(2) Net sales (all on account) for the year were $101,600. Metlock does not offer cash discounts,

Accounts Receivable A/c Dr. $101,600

To Sales A/c $101,600

(To record sales on account)

(3) Collections on accounts receivable during the year were $82,300,

Cash A/c Dr. $82,300

To Accounts Receivable $82,300

(To record the receipt of accounts receivable)