Wine Country Gift Shop sells cards, supplies, and various holiday gift items. All sales are subject to

Question:

Wine Country Gift Shop sells cards, supplies, and various holiday gift items. All sales are subject to a sales tax of 8 percent. The shop uses a sales journal and general journal.

DATE................. TRANSACTIONS

Feb. 3 Sold Joel Bennett a box of holiday greeting cards for $75 plus sales tax of $6 on Sales Slip 201.

4 Sold Ken Hamlett a Valentine's Day party pack for $200 plus sales tax of $16 on Sales Slip 202.

5 Vickie Neal bought 10 boxes of Valentine's Day gift packs for her office. Sales Slip 203 was issued for $300 plus sales tax of $24.

8 Sold Amy Peloza a set of crystal glasses for $400 plus sales tax of $32 on Sales Slip 204.

9 Larry Edwards purchased two statues for $300 plus $24 sales tax on Sales Slip 205.

9 Gave Vickie Neal an allowance because of incomplete items in two gift packs; issued Credit Memorandum 101 for $54, which includes sales tax of $4.

10 Sold Gordon Dunn a Valentine Birthday package for $150 plus $12 sales tax on Sales Slip 206.

Feb. 13 Gave Amy Peloza an allowance of $50 because of two broken glasses in the set she purchased on February 8. Credit Memorandum 102 was issued for the allowance plus sales tax of $4.

14 Sold Joel Bennett 12 boxes of gift candy for $200 plus sales tax of $16 on Sales Slip 207.

15 Sold a punch serving set with glasses for $300 to Kerry Goree. Sales tax of $24 was included on Sales Slip 208.

20 Sold Ned Jones a box of holiday greeting cards for $100 plus sales tax of $8 on Sales Slip 209.

22 Sold Stacie Andrews a set of crystal glasses for $400 plus sales tax of $32 on Sales Slip 210.

28 Melissa Thomas purchased three statues for $600 plus $48 sales tax on Sales Slip 211.

INSTRUCTIONS

1. Record the credit sale transactions for February in the proper journal. Use 6 as the page number for the sales journal and 16 as the page number for the general journal.

2. Immediately after recording each transaction, post to the accounts receivable ledger.

3. Post the entries to the appropriate accounts.

4. Prepare a schedule of accounts receivable and compare the balance due with the amount shown in the Accounts Receivable control account.

Analyze: How many postings were made to the general ledger?

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...