On March 3rd your company made a sale on account to Mt. Sinai Missionary Baptist Church in the amount of $619.00 with tax included (7.5%). When the order was received a credit memo was issued in the amount of $100.00 due to a damaged product that was delivered (tax will need to be added to this portion of this transaction).

Make sure that all journal entries are done in order based on the questions.

*tip - you must first calculate the sale w/o tax to make the initial journal entry*

1. Make the correcting entry necessary to update the Churches A/R account.
2. Upon review you realized that they made an error in billing. The Church is tax exempt. Make a correcting entry for this as well.
3. What is the ending amount for A/R sub ledger account?

Journal entry