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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:
DATE | TRANSACTIONS | |
2019 | ||
Sept. | 1 | Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,200 plus sales tax of $154. |
3 | Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56. | |
7 | Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. | |
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 $10,600 plus sales tax of $742. | |
16 | Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49. | |
17 | Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154. | |
18 | Received $680 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 $300 plus sales tax of $21. | |
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 $500 plus sales tax of $35. | |
30 | Recorded cash sales for the period from September 16 to September 30 of $10,900 plus sales tax of $763. |
Required: Record the transactions in a general journal. Analyze: What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)
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