Question
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.
1 | Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,000 plus sales tax of $210. | ||
3 | Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63. | ||
7 | Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $200 plus sales tax of $14. | ||
12 | Accepted return of defective stereo equipment from Jim Peterson; 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 $9,200 plus sales tax of $644. | ||
16 | Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $500 plus sales tax of $35. | ||
17 | Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,000 plus sales tax of $140. | ||
18 | Received $760 from Candy Cho on account. | ||
20 | Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12. | ||
25 | Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14 | ||
27 | Received payment in full from Bridgette Huffman for the sale of September 7 | ||
29 | Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $600 plus sales tax of $42. | ||
30 | Recorded cash sales for the period from September 16 to September 30 of $11,700 plus sales tax of $819. |
GENERAL LEDGER ACCOUNTS
101 | Cash | 401 | Sales | ||||||||||||||||||||||||||||||||||||||
111 | Accounts Receivable | 421 | Sales Returns and Allowances | ||||||||||||||||||||||||||||||||||||||
221 | Sales Tax Payable
GENERAL LEDGER ACCOUNTS
|
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started