Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

College Accounting, Chapters 1-15 (22nd Edition): Chapter 12, Problem 8AP. Only difference is the sales tax is 6% instead of 8%. Sales Journal, Cash Receipts

College Accounting, Chapters 1-15 (22nd Edition): Chapter 12, Problem 8AP. Only difference is the sales tax is 6% instead of 8%.

Sales Journal, Cash Receipts Journal, and General Journal. Owens Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 6% sales tax. Beginning general ledger account balances were Cash, $9,741; and Accounts Receivable, $1058.25. Beginning customer account balances were Thompson Group, $1058.25.

Mar. 1 Sold merchandise to Able & Co., $1,800, plus sales tax. Sale No. 33C.

3 Sold merchandise to R. J. Kalas, Inc., $2,240, plus sales tax. Sale No. 33D.

5 Able & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $30, plus sales tax.

7 Made cash sales for the week, $3,160, plus sales tax.

10 Received payment from Able & Co. for Sale No. 33C less Credit Memo No. 66.

11 Sold merchandise to Blevins Bakery, $1,210, plus sales tax. Sale No. 33E.

13 Received payment from R. J. Kalas for Sale No. 33D.

14 Made cash sales for the week, $4,200, plus sales tax.

16 Blevins Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $44, plus sales tax.

18 Sold merchandise to R. J. Kalas, Inc., $2,620, plus sales tax. Sale No. 33F.

20 Received payment from Blevins Bakery for Sale No. 33E less Credit Memo No. 67.

21 Made cash sales for the week, $2,400, plus sales tax.

25 Sold merchandise to Blevins Bakery, $1,915, plus sales tax. Sale No. 33G.

27 Sold merchandise to Thompson Group, $2,016, plus sales tax. Sale No. 33H.

28 Made cash sales for the week, $3,500, plus sales tax.

Required:

1. Record the transactions in the sales journal, cash receipts journal, and general journal. Total, verify, and rule the columns where appropriate at the end of the month.

2. Post the individual purchase amounts to the accounts payable ledger.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost-Benefit Analysis

Authors: E.J. Mishan, Euston Quah

6th Edition

1138492752, 978-1138492752

More Books

Students also viewed these Accounting questions