College Accounting Chapters 1-13 15th Edition

Accounting for Sales and Accounts Receiveble CHAPTER 7 225 Identifying the accounts used to record sales and related transactions. The transactions below took place at Colorado Outdoor Adventures, a retail business that sells outdoor clothing and camping equipment. Indicate the numbers of the general ledger accounts that Exercise 7.2 Objective 7-1 would be debited and credited to record each transaction. GENERAL LEDGER ACCOUNTS 101 Cash 111 Accounts Receivable 231 Sales Tax Payable 401 451 Sales Sales Returns and Allowances DATE TRANSACTIONS Sold merchandise on credit, the transaction involved sales tax. Received checks from credit customers on account. May 1 3 Accepted a return of merchandise from a credit customer, the original sale involved sales tax. Sold merchandise for cash; the transaction involved sales tax. 5 Gave an allowance to a credit customer for damaged merchandise; the original sale involved sales tax. Provided a cash refund to a customer who returned merchandise; the original sale was made for cash and involved sales tax. 6