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Problem 7.6A (Static) Recording sales made for cash, on open account, and with credit cards. LO 7-1,7- 2, 7-4 Royal Gift Shop sells cards, supplies,

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Problem 7.6A (Static) Recording sales made for cash, on open account, and with credit cards. LO 7-1,7- 2, 7-4 Royal Gift Shop sells cards, supplies, and various holiday greeting cards. Sales to retail customers are subject to an 8 percent sales tax The firm sells its merchandise for cash, to customers using bank credit cards, such as MasterCard and Visa, and to customers using American Express. The bank credit cards charge a 2 percent fee. American Express charges a 3 percent fee Royal Gift Shop also grants trade discounts to certain wholesale customers who place large orders. These orders are not subject to sales tax During February 20X1, Royal Gift Shop engaged in the following transactions DATE TRANSACTIONS 20X1 Feb. 1 Sold crystal foods to Lovely Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with teres of n/15. 15 Recorded cash sales for the period from February 1 to February 15 of 58.600 plus sales tax of 5688. 15 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $12,00 plus sales tax of $1,040. (Record the 2 percent credit card expense at this time.) 16 Received a check from Lovely Kitchens in payment of Invoice 5950 dated february 1. 16 Sold merchandise to customers using American Express for 58,10 plias sales tax of 5648. 17 Sold a set of Roman statues to Beautiful Bedrooms, a wholesale customer. The list price is $12,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Twoice 5951 with terms of /15. 2e Received payment from herican Express for the ancunt billed on February 16, less a percent credit card expense. 27 Received check from Beautiful Bedrooms in payment of Invoice 1951 dated February 172 20 Recorded cash sales for the period from February 16 to February 28 of 57,750 plus sales tax of $20. 28 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $15,000 plus sales tax of $1,200. (Hecord the 2 percent credit card expense at this time.) 20 Sold merchandise to customers using American Express for $12,200 plus sales tax of $976. Required: 2. Record the transactions in a general journal 3. Post the entries from the general journal to the appropriate accounts in the general ledger GENERAL LEDGER ACCOUNTS 101 Cash. 523,230 Dr. 121 Accounts Receivable 322 Sales Tax Payable 401 Sales 521 Credit Card Expense Analyze: What was the total credit card expense incurred in February Complete this question by entering your answers in the tabs below. X: Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15. bri al 2 Recorded cash sales for the period from February 1 to February 15 of $8,600 plus sales tax of 5688. 3 Recorded sales for the period from February 1 to February 15 to customers using bank credit cards of $13,000 plus sales tax of $1,040. (Record the 2 percent credit card expense at this time.) 4 Received a check from Lovely Kitchens in payment of Invoice 5950 dated February 1. Note journal entry has been entered X: 5 E. Sold merchandise to customers using American Express for $8,100 plus sales tax of $648. 6 price ales Sold a set of Roman statues to Beautiful Bedrooms, a wholesale customer. The list price is $12,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5951 with terms of n/15. 7 Cre Received payment from American Express for the amount billed on February 16, less a 3 percent credit card expense. 8 Received a check from Beautiful Bedrooms in payment of Invoice 5951 dated February 17. DALAH F C Note : journal entry has been entered View Record entry Clear entry CU VERLUE ELLE expense. 8 Received a check from Beautiful Bedrooms in payment of Invoice 5951 dated February 17. ori ale 9 Recorded cash sales for the period from February 16 to February 28 of $7,750 plus sales tax of $620. 10 Recorded sales for the period from February 16 to February 28 to customers using bank credit cards of $15,000 plus sales tax of $1,200. (Record the 2 percent credit card expense at this time.) 11 Sold merchandise to customers using American Express for $12,200 plus sales tax of $976. Note : journal entry has been entered Record entry Clear entry Vies View transaction list Journal entry worksheet 1 2 3 4 5 6 7 CO 11 Sold crystal goods to Lovely Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Invoice 5950 with terms of n/15. Note: Enter debits before credits Account Title Debit Credit Date Feb 1, 20X1 Record entry Clear entry View general journal Post the entries from the general journal to the appropriate accounts in the general ledger. (Round your answer to 2 decimal places.) Debat Account No. 1 Credit Balance Account Recehale Det Debit Account No 121 Credit Balance Feb 01, 20X1 Sales Sales Tax Payable Date Debit Account No. 222 Credit Balance Account No. 401 Credit Balance Date Debit Sales Sales Tax Payable Date Debit Account No: 222 Credit Balance Account No. 401 Credit Balance Date Debit Credit Card Expense Date Debit Account No. 521 Credit Balance General Journal Analyze Complete this question by entering your answers in the tabs below. General Journal General Ledgers Analyze What was the total credit card expense incurred in February? (Round your intermediate calculations and final answer to 2 decimal places.) . Credit card expense

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