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

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:

Required:
Record the transactions in a general journal.

Analyze:
What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)

DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,200 plus sales tax of $154. 3 Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56. 7 Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28. 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 $10,600 plus sales tax of $742. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49. 17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154. 18 Received $680 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 $300 plus sales tax of $21. 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 $500 plus sales tax of $35. 30 Recorded cash sales for the period from September 16 to September 30 of $10,900 plus sales tax of $763.

Explanation / Answer

General Journal: date accounts titles debit $ credit $ 2019 1-Sep AR 2354 Sales revenue 2200 Sales tax 154 (being sale to candy cho-slip 101) 3-Sep AR 856 Sales revenue 800 Sales tax 56 (being sale to Jim Peterson-slip 102) 7-Sep AR 428 Sales revenue 400 Sales tax 28 (being sale to Bridgette Huffman-slip 103) 12-Sep Sales return 100 Sales tax 7 AR 107 (being sales return of sale on sept 3 to Jim) 15-Sep Cash 11342 Sales revenue 10600 Sales tax 742 (being cash sales booked) 16-Sep AR 749 Sales revenue 700 Sales tax 49 (being sale to Kathy-slip 104) 17-Sep AR 2354 Sales revenue 2200 Sales tax 154 (being sale to Mark Naavalta-slip 105) 18-Sep Cash 680 AR 680 (cash reced. From Candy Cho) 20-Sep Cash 749 AR 749 (cash reced. From Jim) 25-Sep Sales return 300 Sales tax 21 AR 321 (being sales return of sale on sept 17 to Mark) 27-Sep Cash 428 AR 428 (payment recd. From Bridgette for sale sep 7) 29-Sep AR 535 Sales revenue 500 Sales tax 35 (being sale to Mark Naavalta-slip 106) 30-Sep Cash 11663 Sales revenue 10900 Sales tax 763 (being cash sales booked) Entertainment sale = $2200 Non-entertainment sale = $4200 The above is except cash sales.

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.