Assume that Wise Co. in the previous problem uses the periodic inventory system.

Required
1. Prepare headings for a sales journal like the one in Exhibit 7A.1. Prepare headings for a cash receipts journal like the one in Exhibit 7A.2. Journalize the April transactions shown in the previous problem that should be recorded in the sales journal and the cash receipts journal assuming the periodic inventory system is used.
2. Open the general ledger accounts with balances as shown in the previous problem (do not open a Cost of Goods Sold ledger account). Also open accounts receivable subsidiary ledger accounts for Brooke Sledd, Paul Kohr, and Amy Nilson. Under the periodic system, an Inventory account exists but is inactive until its balance is updated to the correct inventory balance at year-end. In this problem, the Inventory account remains inactive but must be included to correctly complete the trial balance.
3. Complete parts 3, 4, and 5 of the previous problem using the results of parts 1 and 2 of this problem.

Refer to the 13th Exhibit of this chapter and complete the segment return on assets table for Wolfe Company. Analyze your findings and identify the segment with the highest, and that with the lowest, segment return on assets.

Does the income statement of Palm in Appendix A indicate the net income earned by its business segments?If so, provide them.

Find the note that discusses Research In Motion’s operations by segments in Appendix A. In what segment does it predominantly operate?

A company that records credit purchases in a purchases journal and records purchases returns in a general journal made the following errors. Indicate when each error should be found.

1. Posted a purchases return to the Accounts Payable account and to the creditor’s subsidiary account but did not post the purchases return to the Inventory account.
2. Posted a purchases return to the Inventory account and to the Accounts Payable account but did not post to the creditor’s subsidiary account.
3. Correctly recorded a $4,000 purchase in the purchases journal but posted it to the creditor’s subsidiary account as a$400 purchase.
4. Made an addition error in determining the balance of a creditor’s subsidiary account.
5. Made an addition error in totaling the Office Supplies column of the purchases journal.

At the end of May, the sales journal of Clear View is shown below:

Clear 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 controlling account.

Why should sales to and receipts of cash from credit customers be recorded and posted as soon as possible?

Nestlé, a Switzerland-based company, uses a sales journal, a purchases journal, a cash receipts journal, a cash disbursements journal, and a general journal in a manner similar to that explained in this chapter. Journalize the following summary transactions of Nestlé transactions that should be recorded in the general journal. For those not recorded in the general journal, determine only the special journal where each should be recorded. (All amounts in millions of Swiss franc, CHF.)

1. Nestlé purchased CHF 8,000 of merchandise on credit from the suppliers.
2. Nestlé sold CHF 100,000 of merchandise (cost is CHF 44,000) on credit to customers.
3. A key customer returned CHF 900 of (worthless) merchandise to Nestlé (assume the cost of this merchandise is left in cost of goods sold).

Apple reports the following operating income (and average assets in parentheses) for each of its geographic segments—$millions: Americas,$6,637 ($1,882); Europe,$4,296 ($1,352); and Japan,$961 ($483). Apple also reports the following sales (only) by product segments: iPhone,$13,033; iPod, $8,091; Desktops,$4,324; Portables, $9,535; Other,$7,922. Compute Apple’s return on assets for each of its geographic segments, and assess the relative performance of these segments. Calculate the percentage of total sales for each of its five product segments.

Porter Pharmacy applies the following journals: sales journal, purchases journal, cash receipts journal, cash disbursements journal, and general journal. On June 5, Porter purchased merchandise priced at $12,000, subject to credit terms of 2/10, n/30. On June 14, the pharmacy paid the net amount due for the merchandise. In journalizing the payment, the pharmacy debited Accounts Payable for$12,000 but failed to record the cash discount on the purchases. Cash was properly credited for the actual $11,760 paid. (a) In what journals would the June 5 and the June 14 transactions be recorded? (b) What procedure is likely to discover the error in journalizing the June 14 transaction?

Credits to customer accounts and credits to Other Accounts are individually posted from a cash receipts journal such as the one in the 7th exhibit in this chapter. Why not put both types of credits in the same column and save journal space?

Winslow Company posts its sales invoices directly and then binds them into a Sales Journal. Winslow had the following credit sales to these customers for the month of June.

Required
1. Open an accounts receivable subsidiary ledger having a T-account for each customer. Post the invoices to the subsidiary ledger.
2. Open an Accounts Receivable controlling T-account and a Sales T-account to reflect general ledger accounts. Post the end-of-month total from the sales journal to these accounts.
3. Prepare a schedule of accounts receivable and prove that its total equals the Accounts Receivable controlling account balance.

Discuss the procedures involving the use of copies of a company’s sales invoices as a sales journal.

Prepare headings for a cash disbursements journal like the one in the fourth exhibit of this chapter. Journalize the April transactions from the previous exercise that should be recorded in the cash disbursements journal assuming that the periodic inventory system is used.