Posting to Subsidiary Ledger: Example 1
Use the Olympic Sports Wear transaction from Example 1 to prepare a subsidiary ledger.
In the example, Olympic Sports Wear sold merchandise on account to Kevin Sports for $400, with $24 sales tax.
The sales journal for this transaction is displayed below. Post this sales journal entry to the accounts receivable subsidiary ledger.
Step 1: Enter the transaction date in the Date column of the subsidiary ledger account.
Step 2: In the Posting Reference column, enter the journal letter and the journal page number.
Step 3: In the Debit column, enter the total amount to be received from the customer.
Step 4: Compute the new balance and enter it in the Balance column.
Step 5: Return to the sales journal and enter a check mark in the Posting Reference column.
