assume that wise co in problem 7 1a uses the periodic inventory system 646347
Assume that Wise Co. in Problem 7 1A uses the periodic inventory system.
1. Prepare headings for a sales journal like the one in Exhibit 7A.1. Prepare headings for a cash receipts journal like the one in Exhibit 7A.2. Journalize the April transactions shown in Problem 7 1A that should be recorded in the sales journal and the cash receipts journal assuming the periodic inventory system is used.
2. Open the general ledger accounts with balances as shown in Problem 7 1A (do not open a Cost of Goods Sold ledger account). Also open accounts receivable subsidiary ledger accounts for Brooke Sledd, Paul Kohr, and Amy Nilson. Under the periodic system, an Inventory account exists but is inactive until its balance is updated to the correct inventory balance at year end. In this problem, the Inventory account remains inactive but must be included to correctly complete the trial balance.
3. Complete parts 3, 4, and 5 of Problem 7 1A using the results of parts 1 and 2 of this problem.