Exercise 7.4 Recording sales made for cash and on account, with 8 percent sales tax, and sales returns.

LO 7-1 Record the following transactions of Fashion Park in a general journal. F

ashion Park must charge 8 percent sales tax on all sales.

DATE TRANSACTIONS 2019

April 2 Sold merchandise for cash, $2,500 plus sales tax.

April 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

April 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

April 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax.

The original sale was made on Sales Slip 908 of April 4.

April 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

1

Journal Entry

Sold merchandise for cash, $2,500 plus sales tax.

2

The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

3

Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

4

Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4.

5

Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.