Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Exceptional Electronics began operations September 1, 2019. The firm sells its m

ID: 2393520 • Letter: E

Question

Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions.

Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,000 plus sales tax of $210.

Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63.

Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $200 plus sales tax of $14.

Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $100 plus sales tax of $7. The stereo equipment was sold on September 3.

Recorded cash sales for the period from September 1 to September 15 of $9,200 plus sales tax of $644.

Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $500 plus sales tax of $35.

Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,000 plus sales tax of $140.

Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.

Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14

Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $600 plus sales tax of $42.

Recorded cash sales for the period from September 16 to September 30 of $11,700 plus sales tax of $819.

  

GENERAL LEDGER ACCOUNTS

Sales Tax Payable

GENERAL LEDGER ACCOUNTS

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS



Required:

Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.

Prepare a schedule of accounts receivable.


Analyze:
What is the amount of sales tax owed at September 30, 2019?

1

Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,000 plus sales tax of $210.

3

Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63.

7

Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $200 plus sales tax of $14.

12

Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $100 plus sales tax of $7. The stereo equipment was sold on September 3.

15

Recorded cash sales for the period from September 1 to September 15 of $9,200 plus sales tax of $644.

16

Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $500 plus sales tax of $35.

17

Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,000 plus sales tax of $140.

18 Received $760 from Candy Cho on account. 20

Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.

25

Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $200 plus sales tax of $14

27 Received payment in full from Bridgette Huffman for the sale of September 7 29

Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $600 plus sales tax of $42.

30

Recorded cash sales for the period from September 16 to September 30 of $11,700 plus sales tax of $819.

Explanation / Answer

Date/S.N

Particulars

Slip

Credit ($)

Credit ($)

1

Candy Cho

Sales

Sales Tax Payable

S.S. 101

3,210.00

.........

3,000.00

210.00

2

Jim Peterson

Sales

Sales Tax Payable

S.S. 102

963.00

........

900.00

63.00

3

Bridgette Huffman

Sales

Sales Tax Payable

S.S. 103

214.00

........

200.00

14.00

4

Sales Return and Allowances

Sales Tax Payable

Jim Peterson

C.M. 101

100.00

7.00

........

........

107.00

5

Cash

Sales

Sales Tax Payable

-

9,844.00

........

9,200.00

644.00

6

Kathy Sundstrand

Sales

Sales Tax Payable

S.S. 104

535.00

........

500.00

35.00

7

Mark Navalta

Sales

Sales Tax Payable

S.S. 105

2,140.00

........

2,000.00

140.00

8

Cash

Candy Cho

-

760.00

........

760.00

9

Cash

Jim Peterson

-

856.00

........

856.00

10

Sales Return and Allowances

Sales Tax Payable

Mark Navalta

C.M. 102

200.00

14.00

........

........

214.00

11

Cash

Bridgette Huffman

-

214.00

........

214.00

12

Mark Navalta

Sales

Sales Tax Payable

S.S. 106

642.00

........

600.00

42.00

13

Cash

Sales

Sales Tax Payable

-

12,519.00

........

11,700.00

819.00

CASH

Particulars

Debit

Particulars

Credit

Sales

9,200.00

Balance c/d

23979

Sales Tax Payable

644.00

Candy Cho

760.00

Jim Peterson

856.00

Sales

11,700.00

Sales Tax Payable

819.00

TOTAL

23,979.00

TOTAL

23,979.00

SALES

Particulars

Debit

Particulars

Credit

Income Statement (P/L)

Candy Cho

3,000.00

Jim Peterson

900.00

Bridgette Huffman

200.00

Cash

9,200.00

Kathy Sundstrand

500.00

Mark Navalta

2,000.00

Mark Navalta

600.00

Cash

11,700.00

TOTAL

28,100.00

TOTAL

28,100.00

SALES RETURN AND ALLOWANCE

Particulars

Debit

Particulars

Credit

Jim Peterson

100.00

Income Statement (P/L)

300

Mar Navalta

200.00

TOTAL

300.00

TOTAL

300.00

SALES TAX PAYABLE

Particulars

Debit

Particulars

Credit

Jim Peterson

7.00

Candy Cho

210.00

Jim Peterson

63.00

Bridgette Huffman

14.00

Cash

644.00

Kathy Sundstrand

35.00

Mark Navalta

140.00

Mark Navalta

42.00

Cash

819.00

TOTAL

1,967.00

TOTAL

1,967.00

CANDY CHO

Particulars

Debit

Particulars

Credit

Sales

3,000.00

Cash

760.00

Sales Tax Payable

210.00

Balance c/d

2,450.00

TOTAL

3,210.00

TOTAL

3,210.00

JIM PETERSON

Particulars

Debit

Particulars

Credit

Sales

900.00

Sales Return And Allowance

100.00

Sales Tax Payable

63.00

Sales Tax Payable

7.00

Cash

856.00

TOTAL

963.00

TOTAL

963.00

BRIDGETTE HUFFMAN

Particulars

Debit

Particulars

Credit

Sales

200.00

Cash

214.00

Sales Tax Payable

14.00

TOTAL

214.00

TOTAL

214.00

KATHY SUNDSTRAND

Particulars

Debit

Particulars

Credit

Sales

500.00

Balance c/d

535.00

Sales Tax Payable

35.00

TOTAL

535.00

TOTAL

535.00

MARK NAVALTA

Particulars

Debit

Particulars

Credit

Sales

2,000.00

Sales Return And Allowance

200.00

Sales Tax Payable

140.00

Sales Tax Payable

14.00

Sales

600.00

Balance c/d

2,568.00

Sales Tax Payable

42.00

TOTAL

2,782.00

TOTAL

2,782.00

Date/S.N

Particulars

Slip

Credit ($)

Credit ($)

1

Candy Cho

Sales

Sales Tax Payable

S.S. 101

3,210.00

.........

3,000.00

210.00

2

Jim Peterson

Sales

Sales Tax Payable

S.S. 102

963.00

........

900.00

63.00

3

Bridgette Huffman

Sales

Sales Tax Payable

S.S. 103

214.00

........

200.00

14.00

4

Sales Return and Allowances

Sales Tax Payable

Jim Peterson

C.M. 101

100.00

7.00

........

........

107.00

5

Cash

Sales

Sales Tax Payable

-

9,844.00

........

9,200.00

644.00

6

Kathy Sundstrand

Sales

Sales Tax Payable

S.S. 104

535.00

........

500.00

35.00

7

Mark Navalta

Sales

Sales Tax Payable

S.S. 105

2,140.00

........

2,000.00

140.00

8

Cash

Candy Cho

-

760.00

........

760.00

9

Cash

Jim Peterson

-

856.00

........

856.00

10

Sales Return and Allowances

Sales Tax Payable

Mark Navalta

C.M. 102

200.00

14.00

........

........

214.00

11

Cash

Bridgette Huffman

-

214.00

........

214.00

12

Mark Navalta

Sales

Sales Tax Payable

S.S. 106

642.00

........

600.00

42.00

13

Cash

Sales

Sales Tax Payable

-

12,519.00

........

11,700.00

819.00