Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, "If your pet is not becoming to you, he should be coming to us." The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receivable ledger. The following sales and cash collections took place during the month of September:

Sept. 2 Sold a fish aquarium on account to Ken Shank, $125.00 plus tax of $7.50, terms n/30. Sale No. 101.

3 Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No. 102.

5 Sold a bird cage on account to Jean Warkentin, $43.95 plus tax of $2.64, terms n/30

Sale No. 103.

8 Cash sales for the week were $2,332.45 plus tax of $139.95.

10 Received cash for boarding and grooming services, $625.00 plus tax of $37.50.

11 Jean Warkentin stopped by the store to point out a minor defect in the bird cage purchased in Sale No. 103. The Harlands offered a sales allowance of $10.00 plus tax on the price of the cage which satisfied Warkentin.

Sept. 12 Sold a cockatoo on account to Tully Shaw, $1,200.00 plus tax of $72.00, terms n/30.

Sale No. 104.

14 Received cash on account from Rosa Alanso, $256.00.

15 Rosa Alanso returned merchandise, $93.28 including tax of $5.28.

15 Cash sales for the week were $2,656.85 plus tax of $159.41.

16 Received cash on account from Nancy Truelove, $58.25.

18 Received cash for boarding and grooming services, $535.00 plus tax of $32.10.

19 Received cash on account from Ed Cochran, $63.25.

20 Sold pet supplies on account to Susan Hays, $83.33 plus tax of $5.00, terms n/30. Sale No. 105.

21 Sold three Labrador Retriever puppies to All American Day Camp, $375.00 plus tax of $22.50, terms n/30. Sale No. 106.

22 Cash sales for the week were $3,122.45 plus tax of $187.35.

23 Received cash for boarding and grooming services, $515.00 plus tax of $30.90.

25 Received cash on account from Ken Shank, $132.50.

26 Received cash on account from Nancy Truelove, $72.35.

27 Received cash on account from Joe Gloy, $273.25.

28 Borrowed cash to purchase a pet limousine, $11,000.00.

29 Cash sales for the week were $2,835.45 plus tax of $170.13.

30 Received cash for boarding and grooming services, $488.00 plus tax of $29.28.

Wayward had the following general ledger account balances as of September 1:

Wayward also had the following accounts receivable ledger balances as of September 1:
Accounts Receivable
Customer Balance
Rosa Alanso
2541 East 2nd Street
Bloomington, IN 47401-5356 $456.00
Ed Cochran
2669 Windcrest Drive
Bloomington, IN 47401-5446 $63.25
Joe Gloy
1458 Parnell Avenue
Muncie, IN 47304-2682 $273.25
Nancy Truelove
2300 E. National Road
Cumberland, IN 46229-4824 $58.25
New customers opening accounts during September were as follows:
All American Day Camp Tully Shaw
3025 Old Mill Run 3315 Longview Avenue
Bloomington, IN 47408-1080 Bloomington, IN 47401-7223
Susan Hays Jean Warkentin
1424 Jackson Creek Road 1813 Deep Well Court
Nashville, IN 47448-2245 Bloomington, IN 47401-5124
Ken Shank
6422 E. Bender Road
Bloomington, IN 47401-7756
REQUIRED
1. Enter the transactions for the month of September in a general journal. (Begin with page 7.)
2. Post the entries to the general and subsidiary ledgers. Open new accounts for any customers who did not have a balance as of September 1.
3. Prepare a schedule of accounts receivable.
4. Compute the net sales for the month ofSeptember.

Transcribed Image Text:

Gencral Ledger Balance on Sept. 1 Account Account Title No. 101 122 201 231 401 401.1 402 $23,500.25 850.75 2,500,00 Cash Accounts Receivable Notes Payable Sales Tax Payable Sales Sales Returns and Allowances Boarding and Grooming Revenue 909.90 13,050.48 86.00 2,115.00