Journal entries for sales discounts and sales returns and allowances The November sales transactions of Grassley Company are described in Problem 11-3B. In addition to those transactions, Grassley has the following nonsales transactions.
Nov.

18 Received cash payment from Cyd Rounder for the November 8 sale less the 2% cash discount.
19 Received cash payment from Carlos Mantel for the November 10 sale less the 2% cash discount.

25 Received cash payment from Tori Tripp for the November 15 sale less the 2% cash discount.
29 Issued a credit memorandum of \($675\) (plus a \($54\) sales tax refund) for damaged goods from the sale to Carlos Mantel made on November 22.
Required Record each cash receipt (less any cash discount) as a general journal entry. Also, record any sales return as a general journal entry.

Problem 11-3B:

Sales journal, subsidiary ledger, and schedule of accounts Grassley Company completes the following transactions during November, its first month of operations (terms for all its credit sales are 2/10, n/30).
Nov.

8 Sold merchandise on credit to Cyd Rounder, Invoice No. 439, for \($6,550\) plus sales tax of \($524.\)
10 Sold merchandise on credit to Carlos Mantel, Invoice No. 440, for \($13,500\) plus sales tax of \($1,080.\)
15 Sold merchandise on credit to Tori Tripp, Invoice No. 441, for \($5,250\) plus sales tax of \($420.\)
22 Sold merchandise on credit to Carlos Mantel, Invoice No. 442, for \($3,695\) plus sales tax of \($296.\)
24 Sold merchandise on credit to Tori Tripp, Invoice No. 443, for \($4,280\) plus sales tax of \($342.\)

Required
1. Open the following general ledger accounts: Accounts Receivable, Sales, and Sales Tax Payable.
Open the following accounts receivable subsidiary ledger accounts: Carlos Mantel, Tori Tripp, and Cyd Rounder.
2. Enter the transactions in a sales journal like that in Exhibit 11.6. Number the journal page as page 2.
3. Post all transactions to the accounts receivable subsidiary ledger and its month-end totals to the general ledger.
4. Prove the accuracy of the subsidiary ledger by preparing a schedule of accounts receivable as of November 30.

Transcribed Image Text:

Sales Journal Date Page 3 Exhibit 11.6 Account Invoice Accounts Sales Tax Sales Debited Number PR Receivable Dr. Payable Cr. Cr. Sales Journal Example Nov. 3 27 358125122 Bradford Inc. 145 2,544 144 2,400 Smith Inc. 146 1,113 63 1,050 Cluff Inc. 147 265 15 250 Dobson Inc. 148 583. 33. 550 Taylor Inc. 149 1,431 81 1,350 Burns Inc. 150 636 36 600 17 Smith Inc. 151 1,484 84 1,400 Dobson Inc. 152 1,272 Taylor Inc. 153 318 NO 72 1,200 18 300