accounting 101 chapter 7 needhelp
Incredible Sounds is a wholesale business that sells musical instruments. Transactions involving sales and cash receipts for the firm during April 20x1 follow. The firm sells its merchandise for cash and on open account. During April, Incredible Sounds engaged in the following transactions: DATE TRANSACTIONS 20X1 April 1 Sold merchandise for $4,500 to Alto Music Center; issued Invoice 3912 with terms of 1/10, n/30. 3 Received a check for $1,980 from Music Supply Store in payment of Invoice 2718 of March 25 ($2,000), less cash discount ($20). 5 Sold merchandise totaling $1,725 in cash to a new customer who has not yet established credit. 7 Merchandise of $80 sold on April 5 is returned for a cash refund. 8 Sold merchandise for $6,500 to Music Warehouse; issued Invoice 3913 with terms of 2/10, n/30. 10 Received payment from Alto Music Center in payment of Invoice 3912, less cash discount. 15 Accepted a return of damaged merchandise from Music Warehouse; issued Credit Memorandum 105 for $2,300. The original sale was made on Invoice 3913 on April 8. 17 Received payment from Music Warehouse for the sale of April 8, less the return on April 15; Music Warehouse deducted the appropriate cash discount from its payment. 19 Received a check for $2,300 as payment in full from Oldies Sounds for Invoice 3850 dated March 20. 20 Sold merchandise for $11, 200 to Hawk Music Center; issued Invoice 3914 with terms of 2/10, n/30. 25 Sold merchandise for $10,800 to Modern Sounds; issued Invoice 3915 with terms of 2/10, n/30. 26 Sold merchandise for $8,600 to Country Tunes; issued Invoice 3916 with terms of 2/10, n/30. 27 Accepted a return of damaged merchandise from Modern Sounds; issued Credit Memorandum 106 for $500. The original sale was made on Invoice 3915 on April 25. 29 Received payment from Hawk Music Center for the sale of April 20, less cash discount. 30 Sold merchandise for $3,200 to oldies Sounds; issued Invoice 3917 with terms of 2/10, n/30. Required: 2. Post the above transactions to the appropriate accounts in the general ledger and in the accounts receivable ledger. 3. Prepare a schedule of accounts receivable. GENERAL LEDGER ACCOUNTS 101 Cash, $27,400 Dr. 111 Accounts Receivable, $4,300 Dr. 401 Sales 451 Sales Returns and Allowances 452 Sales Discounts Precision Electronics began operations September 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. The terms for all sales on credit are net 30. During September, Precision Electronics engaged in the following transactions: DATE TRANSACTIONS 20X1 Sept. 1 sold a high-definition television set on credit to Cindy Chin; issued Sales Slip 101 for $1,200 plus sales tax of $84. 3 Sold stereo equipment on credit to Bob Perez; issued Sales Slip 102 for $1,400 plus sales tax of $98. 7 Sold a microwave oven on credit to Bobbi Huber; issued Sales Slip 103 for $250 plus sales tax of $17.50. 12 Accepted return of defective stereo equipment from Bob Perez; issued Credit Memorandum 101 for $100 plus sales tax of $7. The stereo equipment was sold on September 3. 15 Recorded cash sales for the period from September 1 to September 15 of $9, 400 plus sales tax of $658. 16 Sold a gas dryer on credit to Katie Kilgore; issued Sales Slip 104 for $600 plus sales tax of $42. 17 Sold a home entertainment system on credit to James Washington; issued Sales Slip 105 for $1,300 plus sales tax of $91. 18 Received $784 from Cindy Chin on account. 20 Received payment in full from Bob Perez for the sale of September 3, less the return of September 12. 25 Gave James Washington an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7. 27 Received payment in full from Bobbi Huber for the sale of September 7. 29 Sold a dishwasher on credit to James Washington; issued Sales Slip 106 for $800 plus sales tax of $56. 30 Recorded cash sales for the period from September 16 to September 30 of $12,100 plus sales tax of $847. Required: Record the transactions in a general journal. Analyze: What portion of the net sales during September were for entertainment items
