Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero

Based on the data presented in Exercise 5-1, assume that the beginning balances for the customer accounts were zero, except for Sunrise Enterprises, which had a $480 beginning balance. In addition, there were no collections during the period.

a. Set up a T account for Accounts Receivable and T accounts for the four accounts needed in the customer ledger.
b. Post to the T accounts.
c. Determine the balance in the accounts.
d. Prepare a listing of the accounts receivable customer balances as of March 31, 2014.


Answer:

a., b., and c.
Accounts Receivable
Mar. 1 Bal. 480
Mar. 31 6,795
Mar. 31 Bal. 7,275
Eco-Systems Hazmat Safety Co.
Mar. 20 1,700 Mar. 1 2,875
Mar. 31 Bal. 1,700 Mar. 31 Bal. 2,875
Masco Co. Sunrise Enterprises
Mar. 10 980 Mar. 1 Bal. 480
Mar. 31 Bal. 980 Mar. 27 1,240
Mar. 31 Bal. 1,720

d.
 ZETA SERVICES INC.
Accounts Receivable Customer Balances
March 31, 2014
Eco-Systems $1,700
Hazmat Safety Co. 2,875
Masco Co. 980
Sunrise Enterprises 1,720
Total accounts receivable $7,275