Question

Nex Company uses both special journals and a general journal. On June 30, after all monthly postings had been completed, the Accounts Receivable control account in the general ledger had a debit balance of $307,700; the Accounts Payable control account had a credit balance of $87,300.
The July transactions recorded in the special journals are summarized below. No entries affecting accounts receivable and accounts payable were recorded in the general journal for July.

Sales journal Total sales $161,400
Purchases journal Total purchases $66,400
Cash receipts journal Accounts receivable column total $131,000
Cash payments journal Accounts payable column total $47,500

(a) What is the balance of the Accounts Receivable control account after the monthly postings on July 31?
(b) What is the balance of the Accounts Payable control account after the monthly postings on July 31?

Answer 1

Answer:

a. $338,100

b. $106,200

Explanation:

The computation is shown below:

a. The balance of the Accounts Receivable control account is given below:

= Debit balance of the account receivable control account + Total sales - cash receipts journal

= $307,700 + $161,400 - $131,000

= $338,100

b. The balance of the account payable control account is given below:    

= Credit balance of the account payable control account + Total purchase - cash payments journal

= $87,300 + $66,400 - $47,500

= $106,200