Problem 14-8 Recording Sales and Cash Receipt Transactions River's Edge Canoe & Kayak is a merchandising business in Wyoming. The partial chart of accounts follows: General Ledger Cash in Bank Accounts Receivable Supplies Sales Tax Payable Sales Sales Discounts Sales Returns and Allowances Accounts Receivable Subsidiary Ledger ADV Adventure River Tours DRA Drake, Paul WILD WU Wildwood Resorts Wu, Kim Date Transactions Jan 1 1. Sold $2,000 in merchandise on account to Wildwood Resorts, a tax-exempt agency, credit terms 3/15, n/30, Sales Slip 103. 5 2. Granted Wildwood Resorts a $150 credit allowance for defective merchandise, Credit Memorandum 33. 8 3. Received $485 from Adventure River Tours for $500 in merchandise sold to it on Dec. 27 less a 3% cash discount of $15, Receipt 96. 104. Sold $500 in merchandise plus a 5% sales tax of $25 to Paul Drake on account, credit terms 3/15, n/30, Sales Slip 104. 12 5. Received a check for $1,794.50 from Wildwood Resorts on account ($1,850 less a 3% cash discount of $55.50), Receipt 97. 15 6. Cash sales were $3,500 plus sales tax of $175, Tape 22. 15 7. Bankcard sales amounted to $4,000 plus sales tax of $200, Tape 22. 20 8. Sold to Adventure River Tours $75 in supplies. Cash received recorded on Receipt 98. 22 9. Granted Kim Wu $63 credit for $60 in damaged merchandise sold to her last month and 5% sales tax of $3 on the merchandise, Credit Memorandum 34. 25 10. Paul Drake sent a check for $510 in payment of his account. The account balance was $525 ($500 in merchandise and $25 sales tax). He took a 3% cash discount of $15 on the merchandise, Receipt 99. 1. Record the above transactions in the general journal. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 9 10 > Sold $2,000 in merchandise on account to Wildwood Resorts, a tax-exempt agency, credit terms 3/15, n/30, Sales Slip 103. Note: Enter debits before credits. Date General Journal Debit Credit Jan. 1 Record entry Clear entry Vlew general Journal