T. M. Maxwell owns a retail business and made the following sales during the month of July

Question:

T. M. Maxwell owns a retail business and made the following sales during the month of July 20--. There is a 5% sales tax on all sales.

July 1 Sale No. 101 to Saga, Inc., $1,200, plus sales tax.

8 Sale No. 102 to Vinnie Ward, $2,100, plus sales tax.

15 Sale No. 103 to Dvorak Manufacturing, $4,300, plus sales tax.

21 Sale No. 104 to Vinnie Ward, $1,800, plus sales tax.

24 Sale No. 105 to Zapata Co., $1,600, plus sales tax. (Open a new account for this customer. Address is 789 N. Stafford Dr., Bloomington, IN 47401–6201.)

29 Sale No. 106 to Saga, Inc., $1,450, plus sales tax.

REQUIRED

1. Record the transactions in the sales journal. Total and verify the column totals and rule the columns.

2. Post the sales journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.

Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...