The debits and credits from two transactions are presented in the following customer account:
NAME Horizon Entertainment
ADDRESS 125 Wycoff Ave.
Date Item
Post.
Ref. Debit Credit Balance
Feb. 1 Balance ✓280
22 Invoice No. 422 CR106120 160
27 Invoice No. 445 R92 170330
Describe each transaction and the source of each posting.
Answers:
Feb.
22. Collected cash of $120 from Horizon Entertainment (Invoice No. 422). Amount posted from Page 106 of the cash receipts journal.
27. Provided $170 of services on account to Horizon Entertainment, itemized on Invoice No. 445. Amount posted from Page 92 of the revenue journal.