BBA 2301
Unit 1 Reflection Paper
Principles of Accounting II
BBA 2301
Jack Ermler and Andrea Trump own a small appliance and parts store. They have one
employee who is a repair specialist, who is on a fixed salary, which will be debited from the
General Ledger. Their revenues are made from the sales of appliances to retailers, which makes up
75% of their sales. Appliance parts sold to customers is another 10%, appliances brought in for
repairs makes up the remaining 15% of their total revenue. All their revenue will be listed under
Credits in the General Ledger. General Journal – Transactions that cannot be entered in a special
journal including correcting, adjusting, and closing entries.
Appliances are sold on credit will need to be listed in subsidiary ledgers – sale journal and
purchase journal. Appliances sold with cash basis will need to be listed in subsidiary
ledgers - cash receipt journal and sales journal. Customers are billed on prenumbered invoices, and
these numbers will need to be included in the ledgers for tracking purposes. Sale Journal – All sales
of merchandise on account. Cash Receipts Journal – All cash received (including cash sales).
Customers who make purchases using their account, purchases made will need to be listed
in the Purchases Journal – all purchases of merchandise on account. Credit terms are always net/30
day. As customers pay on their accounts, payments need to be added to the Accounts Receivable
(Cash - Customers, collects transaction data of individual customers). All part sales and repair
work are cash only, which will be listed in subsidiary ledgers - cash receipts journal and cash
payments journal. Cash Payments Journal – All cash paid (including cash purchases).
Merchandise is purchased on account from the manufacturers of both the appliances and the
parts. These need to be listed in the sale journal and purchase journal. All suppliers offer cash
Unit 1 Reflection Paper
Principles of Accounting II
BBA 2301
Jack Ermler and Andrea Trump own a small appliance and parts store. They have one
employee who is a repair specialist, who is on a fixed salary, which will be debited from the
General Ledger. Their revenues are made from the sales of appliances to retailers, which makes up
75% of their sales. Appliance parts sold to customers is another 10%, appliances brought in for
repairs makes up the remaining 15% of their total revenue. All their revenue will be listed under
Credits in the General Ledger. General Journal – Transactions that cannot be entered in a special
journal including correcting, adjusting, and closing entries.
Appliances are sold on credit will need to be listed in subsidiary ledgers – sale journal and
purchase journal. Appliances sold with cash basis will need to be listed in subsidiary
ledgers - cash receipt journal and sales journal. Customers are billed on prenumbered invoices, and
these numbers will need to be included in the ledgers for tracking purposes. Sale Journal – All sales
of merchandise on account. Cash Receipts Journal – All cash received (including cash sales).
Customers who make purchases using their account, purchases made will need to be listed
in the Purchases Journal – all purchases of merchandise on account. Credit terms are always net/30
day. As customers pay on their accounts, payments need to be added to the Accounts Receivable
(Cash - Customers, collects transaction data of individual customers). All part sales and repair
work are cash only, which will be listed in subsidiary ledgers - cash receipts journal and cash
payments journal. Cash Payments Journal – All cash paid (including cash purchases).
Merchandise is purchased on account from the manufacturers of both the appliances and the
parts. These need to be listed in the sale journal and purchase journal. All suppliers offer cash
