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At the end of May, the sales journal of Mountain View appears as follows.
Mountain View also recorded the return of defective merchandise with the following entry.
Required:
1. Open an accounts receivable subsidiary ledger that has a T-account for each customer listed in the sales journal. Post to the customer accounts the entries in the sales journal and any portion of the general journal entry that affects a customer's account.
2. Open a general ledger that has T-accounts for Accounts Receivable, Inventory, Sales, Sales Returns and Allowances, and Cost of Goods Sold. Post the sales journal and any portion of the general journal entry that affects these accounts.
3. Prepare a schedule of accounts receivable and prove that its total equals the balance in the Accounts Receivable controllingaccount.
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On July 1, 2008, Falk Company signed a contract to lease space in a building for 15 years.
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