Response to the following problem:
May's Beauty Store records sales and purchase transactions in the general journal. In addition to a general ledger, May's Beauty Store also uses an accounts receivable ledger and an accounts payable ledger. Transactions for January related to the sales and purchase of merchandise are as follows:
Jan. 2 Bought nine Matte Nail Color Kits from Mejia, Inc., $450, invoice no. 4521, dated January 1; terms 2/10, n/30; FOB shipping point, freight prepaid and added to the invoice, $87.50 (total $537.50).
5 Bought 30 Perfume Cocktail Rings from Braun, Inc., $1,200, invoice no. 37A, dated January 3; terms 2/10, n/30; FOB destination.
8 Sold two Matte Nail Color Kits on account to J. Herbert, sales slip no. 113, $110, plus sales tax of $8.80, total $118.80.
11 Received credit memo no. 455 from Braun, Inc., for merchandise returned, $315.25.
18 Bought 15 Eye Palettes from Vargas, Inc., $660, invoice no. 910, dated January 14; terms net 30; FOB destination.
23 Sold four Eye Palettes on account to T. Cantrell, sales slip no. 114, $200, plus sales tax of $16, total $216.
26 Issued credit memo no. 12 to T. Cantrell for merchandise returned, $50 plus $4 sales tax, total $54.
Required:
1. Open the following accounts in the accounts receivable ledger and record the balances as of January 1: T. Cantrell, $86.99; J. Hebert, $63.47. Write Balance in the Item column and place a check mark in the Post. Ref. column.
2. Open the following accounts in the accounts payable ledger and record the balances as of January 1: Braun, Inc., $513.20; Mejia, Inc., $113.40; Vargas, Inc., $67.15. Write Balance in the Item column and place a check mark in the Post. Ref. column
3. Record the January 1 balances in the general ledger as given: Accounts Receivable 113 controlling account, $150.46; Accounts Payable 212 controlling account, $693.75; Sales Tax Payable 214, $237.89. Write Balance in the Item column and place a check mark in the Post. Ref. column.
4. Record the transactions in the general journal.
5. Post the entries to the general journal and accounts receivable ledger or accounts payable ledger as appropriate.
6. Prepare a schedule of accounts receivable.
7. Prepare a schedule of accounts payable.
8. Compare the totals of the schedules with the balances of the controlling accounts.