Journal entries for cash receipts, sales discounts, and sales returns and allowances The March sales transactions of Church Company are described in Problem 11-3A. In addition to those transactions, Church has the following nonsales transactions.
Mar.

12 Received cash payment from Min Cho for the March 2 sale less the 2% cash discount.
13. Received cash payment from Linda Witt for the March 3 sale less the 2% cash discount.
20 Received cash payment from Jovita Albany for the March 10 sale less the 2% cash discount.
30 Issued a credit memorandum of \($500\) (plus a \($35\) sales tax refund) for damaged goods from the sale to Linda Witt made on March 28.

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 11-3A:

Church Company completes the following transactions during March, its first month of operations (terms for all its credit sales are 2/10, n/30).
Mar.

2. Sold merchandise on credit to Min Cho, Invoice No. 854, for \($16,800\) plus sales tax of \($1,176.\)
3 Sold merchandise on credit to Linda Witt, Invoice No. 855, for \($10,200\) plus sales tax of \($714.\)
10 Sold merchandise on credit to Jovita Albany, Invoice No. 856, for \($5,600\) plus sales tax of \($392.\)
27. Sold merchandise on credit to Jovita Albany, Invoice No. 857, for \($14,910\) plus sales tax of \($1,044.\)
28 Sold merchandise on credit to Linda Witt, Invoice No. 858, for \($4,315\) plus sales tax of \($302.\)
Required
1. Open the following general ledger accounts: Accounts Receivable, Sales, and Sales Tax Payable. Open the following accounts receivable subsidiary ledger accounts: Jovita Albany, Min Cho, and Linda Witt.
2. Enter the transactions in a sales journal like Exhibit 11.6. Number all journal pages 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 March 31.

Transcribed Image Text:

Sales Journal Date Page 3 x Exhibit 11.6 Account Invoice Accounts Sales Tax Sales Debited Number PR Receivable Dr. Payable Cr. Cr. Sales Journal Example Nov. 3 358125722 Bradford Inc. 145 2,544 144 2,400 Smith Inc. 146 1,113 63 1,050 Cluff Inc. 147 265 15 250 11 Dobson Inc. 148 583 33 550 Taylor Inc. 149 1,431 81 1,350 Burns Inc. 150 636 36 600 Smith Inc. 151 1,484 84 1,400 Dobson Inc. 152 1,272 72 1,200 Taylor Inc. 153 318 18 300