The Sun Company Completed the Following Sales and Cash Receipts

Essay

The Sun Company completed the following sales and cash receipts transactions during the first week of December.The Sun Company uses the periodic inventory system.
$\begin{array}{|l|l|}\hline \text { Dec. } 1 & \begin{array}{l}\text { Sold merchandise for } \$ 6,700 \text { on credit to the Two Rivers Co., terms } 2 / 10, n / 30 . \text { Invoice no. } \\\text { 1455. Cost of the merchandise sold is } \$ 3,600 .\end{array} \\\hline \text { Dec. } 1 & \begin{array}{l}\text { Sold merchandise for } \$ 3,400 \text { on credit to the Berlin Co., terms } 2 / 10, n / 30 . \text { Invoice no. } 1456 . \\\text { Cost of the merchandise sold is } \$ 3,600 .\end{array} \\\hline \text { Dec. } 2 & \begin{array}{l}\text { Sold merchandise for } \$ 590 \text { for cash to the Ellison Co. Invoice no. 1457. Cost of the } \\\text { merchandise sold is } \$ 300 .\end{array} \\\hline \text { Dec. } 3 & \text { Borrowed } \$ 10,000 \text { from Custer Bank on a long-term note payable. } \\\hline \text { Dec. } 3 & \begin{array}{l}\text { Sold merchandise for } \$ 7,200 \text { on credit to the Amherst Co., terms } 2 / 10, n / 30 . \text { Invoice no. } \\\text { 1458. Cost of the merchandise sold is } \$ 4,000\end{array} \\\hline \text { Dec. } 5 & \text { Received the amount due from the Two Rivers Co. from the sale on December } 1 . \\\hline \text { Dec. } 6 & \begin{array}{l}\text { Sold merchandise on credit for } \$ 950 \text { to the Waupaca Co., terms } 2 / 10, n / 30 . \text { Invoice No. } \\\text { 1459. }\end{array} \\\hline \text { Dec. } 6 & \text { Received the amount due from the Berlin Co. from the sale on December } 1 .\\\hline\end{array}$
a. Use the sales journal and the cash receipts journal to record these transactions
b. Prepare a schedule of accounts receivable. There were no accounts receivable at December 1.