Tisha Allen opened Tishas Cosmetic Market on December 1. An 8% sales tax is calculated and added
Question:
Tisha Allen opened Tisha’s Cosmetic Market on December 1. An 8% sales tax is calculated and added to all cosmetic sales. Tisha’s offers no sales discounts. The following transactions occurred in December:
Required
1. Journalize, record, and post as appropriate using the perpetual method of accounting for inventory. Beginning balances of Merchandise Inventory is $18,000 for eye shadow and $11,000 for lipstick.
2. Prepare a schedule of accounts receivable for the end of December.
Transcribed Image Text:
202X Dec. 1 Tisha Allen invested $6,000 in Tisha's Cosmetic Market, an online storefront, from her personal savings account. 5 From the sales summary, lipstick cash sales were $5,100, plus sales tax. The cost of the merchandise was $4,025. 5 From the sales summary, eye shadow cash sales were $1,700, plus sales tax. The cost of the merchandise was $975. 8 Sold lipstick on account to Alexander Kozlosky Co., $200, sales ticket no. 1, plus sales tax. The cost of the merchandise was $110. 9 Sold eye shadow on account to Douglas Sabin Co., $800, sales ticket no. 2, plus sales tax. The cost of the merchandise was $520. 15 Issued credit memorandum no. 1 to Alexander Kozlosky Co. for $100 for lipstick returned. (Be sure to reduce Sales Tax Payable for Tisha's Cosmetic Market.) The cost of the merchandise was $55. 19 21 Sold lipstick on account to John Tobin Co., $350, sales ticket no. 3, plus sales tax. The cost of the merchandise was $190. Douglas Sabin Co. paid half the amount owed from sales ticket no. 2, dated December 9. 24 Sold eye shadow on account to Edward Wease Co., $1,000, sales ticket no. 4, plus sales tax. The cost of the merchandise was $625. 25 Issued credit memorandum no. 2 to John Tobin Co. for $250 for lipstick returned from sales ticket no. 3, dated December 21. The cost of the merchandise was $105. Cash sales taken from the sales summary showed the following: 29 1. Lipstick: $900 + $72 sales tax collected. The cost of the merchandise was $600. 2. Eye shadow: $2,900 + $232 sales tax collected. The cost of the merchandise was $1,800. 29 Sold lipstick on account to Douglas Sabin Co., $300, sales ticket no. 5, plus sales tax. The cost of the merchandise was $175. 31 Received payment from Douglas Sabin Co. of sales ticket no. 5, dated December 29.
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Related Book For
College Accounting A Practical Approach Chapters 1-25
ISBN: 9780137504282
15th Edition
Authors: Jeffrey Slater, Mike Deschamps
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