ABC Company had a general ledger accounts receivable balance of $225,888 as of August 31. The accounts receivable subledger had a balance of $169,115….

ABC Company had a general ledger accounts receivable balance of $225,888 as of August 31.  The accounts receivable subledger had a balance of $169,115.  Using the detail provided in the general ledger and subledger below, determine the journal entries necessary to correct the general ledger (assume the subledger is correct).  Please list out detailed journal entries that you would make to correct the general ledger, not a lump sum adjustment of the difference.

General Ledger accounts receivable:

Date    Description                             Monthly Amount                               Balance

08/01   Beginning balance                                                                                212,607

08/03   August Sales #30, 31, 32                      79,000

08/05   August sales bill #33, 34, 35                 89,723

08/06   August sales #36 – 38                          65,400

08/26   July collections                                   (153,500)       

08/31   August sales #39 – 42                           108,300

08/31   August collections                              (175,642)

08/31   Ending Balance                                                                                    $225,888

Subledger accounts receivable:

Date    Description                             Monthly Amount                               Balance

08/01   Beginning balance                                                                                $212,607

08/03   Collections July bill #27            (42,615)

08/03   August sales bill #30                    42,000

08/06   August sales bill #31, 32              37,500

08/07   August collections bill #31         (17,800)

08/15   August sales bill #33, 34, 35         89,723

08/16   August collections bill #30         (42,000)     

08/22   Collections – July bill #22, 23    (153,500)

08/26   August sales bill #36 – 43             201,042

08/30   August collections bill

            #30 – 43 and #43, 32                   (157,842)

08/31   Ending balance                                                                                    169,115

Use this space to write out the journal entries required to correct the general ledger: