Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, If your pet is not becoming to you, he should be coming to us. The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receiv- able ledger. The following sales and cash collections took place during the month of September: Sept. 2 Sold a fish aquarium on account to Ken Shank, $125 plus tax of $7.50, terms n/30. Sale No. 101. 3 Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No. 102. 5 Sold a bird cage on account to Jean Warkentin, 543.95 plus tax of $2.64, terms n/30. Sale No. 103. 8 Cash sales for the week were $2,332.45 plus tax of $139.95. 10 Received cash for boarding and grooming services, $625 plus tax of $37.50. 11 Jean Warkentin stopped by the store to point out a minor defect in the bird cage purchased in Sale No. 103. The Harlands offered a sales allowance of $10 plus tax on the price of the cage which satisfied Warkentin. 12 Sold a cockatoo on account to Tully Shaw, $1,200 plus tax of $72, terms n/30. Sale No. 104. 14 Received cash on account from Rosa Alanso, $256. 15 Rosa Alanso returned merchandise, 593.28 including tax of $5.28. 15 Cash sales for the week were $2,656.85 plus tax of $159.41. 16 Received cash on account from Nancy Truelove, $58.25. 18 Received cash for boarding and grooming services, $535 plus tax of $32.10. 19 Received cash on account from Ed Cochran, $63.25. 20 Sold pet supplies on account to Susan Hays, $83.33 plus tax of $5, terms n/30. Sale No. 105. 21 Sold three Labrador Retriever puppies to All American Day Camp, $375 plus tax of $22.50, terms n/30. Sale No. 106. 22 Cash sales for the week were $3,122.45 plus tax of $187.35. 23 Received cash for boarding and grooming services, $515 plus tax of $30.90. 25 Received cash on account from Ken Shank, $132.50. 26 Received cash on account from Nancy Truelove, $72.35. 27 Received cash on account from Joe Gloy, $273.25. 28 Borrowed cash to purchase a pet limousine, $11,000. 29 Cash sales for the week were $2,835.45 plus tax of $170.13. 30 Received cash for boarding and grooming services, $488 plus tax of $29.28. 201 402 Wayward had the following general ledger account balances as of September 1: Account General Ledger Account Title No. Balance on Sept. 1 Cash 101 $23,500.25 Accounts Receivable 122 850.75 Notes Payable 2,500.00 Sales Tax Payable 231 909.90 Sales 401 13,050.48 Sales Returns and Allowances 401.1 86.00 Boarding and Grooming Revenue 2,115.00 Wayward also had the following accounts receivable ledger balances as of September 1: Accounts Receivable Customer Balance Rosa Alanso 2541 East 2nd Street Bloomington, IN 47401-5356 $456.00 Ed Cochran 2669 Windcrest Drive Bloomington, IN 47401-5446 $ 63.25 Joe Gloy 1458 Parnell Avenue Muncie, IN 47304-2682 $273.25 Nancy Truelove 2300 E. National Road Cumberland, IN 46229-4824 $ 58.25 New customers opening accounts during September were as follows: All American Day Camp Tully Shaw 3025 Old Mill Run 3315 Longview Avenue Bloomington, IN 47408-1080 Bloomington, IN 47401-7223 Susan Hays Jean Warkentin 1424 Jackson Creek Road 1813 Deep Well Court Nashville, IN 47448-2245 Bloomington, IN 47401-5124 Ken Shank 6422 E. Bender Road Bloomington, IN 47401-7756 REQUIRED 1. Enter the transactions for the month of September in a general journal. (Begin with page 7.) 2. Post the entries to the general and subsidiary ledgers. Open new accounts for any customers who did not have a balance as of September 1. 3. Prepare a schedule of accounts receivable. 4. Compute the net sales for the month of September
