Exceptional Electronics began operations September 1, 2019. The firm sells its m
ID: 2403146 • 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:
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.)
Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,700 plus sales tax of $189.
Note: Enter debits before credits.
Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63.
Note: Enter debits before credits.
Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $300 plus sales tax of $21.
Note: Enter debits before credits.
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.
Note: Enter debits before credits.
Recorded cash sales for the period from September 1 to September 15 of $9,500 plus sales tax of $665.
Note: Enter debits before credits.
Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $600 plus sales tax of $42.
Note: Enter debits before credits.
Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,700 plus sales tax of $119.
Note: Enter debits before credits.
Received $730 from Candy Cho on account.
Note: Enter debits before credits.
Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
Note: Enter debits before credits.
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.
Note: Enter debits before credits.
Received payment in full from Bridgette Huffman for the sale of September 7.
Note: Enter debits before credits.
Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $400 plus sales tax of $28.
Note: Enter debits before credits.
Recorded cash sales for the period from September 16 to September 30 of $11,400 plus sales tax of $798.
Note: Enter debits before credits.
DATE TRANSACTIONS 2019 Sept. 1 Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,700 plus sales tax of $189. 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 $300 plus sales tax of $21. 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 $9,500 plus sales tax of $665. 16 Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $600 plus sales tax of $42. 17 Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,700 plus sales tax of $119. 18 Received $730 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 $400 plus sales tax of $28. 30 Recorded cash sales for the period from September 16 to September 30 of $11,400 plus sales tax of $798.Explanation / Answer
Note: Sales revenue and sales returns and allowances have been identified as entertainment and non-entertainment for ease in understanding of the 'Analyze' portion.
Analyze:
Date General Journal Debit Credit Sept 01, 2019 Accounts receivable-Candy Cho. 2889 Sales revenue (Entertainment) 2700 Sales tax payable 189 (To record sales on account) Sept 03, 2019 Accounts receivable-Jim Peterson 963 Sales revenue (Entertainment) 900 Sales tax payable 63 (To record sales on account) Sept 07, 2019 Accounts receivable-Bridgette Huffman 321 Sales revenue (Non-Entertainment) 300 Sales tax payable 21 (To record sales on account) Sept 12, 2019 Sales returns and allowances (Entertainment) 100 Sales tax payable 7 Accounts receivable-Jim Peterson 107 (To record sales returns) Sept 15, 2019 Cash 10165 Sales revenue (Non-Entertainment) 9500 Sales tax payable 665 (To record cash sales) Sept 16, 2019 Accounts receivable-Kathy Sundstrand 642 Sales revenue (Non-Entertainment) 600 Sales tax payable 42 (To record sales on account) Sept 17, 2019 Accounts receivable-Mark Navalta 1819 Sales revenue (Entertainment) 1700 Sales tax payable 119 (To record sales on account) Sept 18, 2019 Cash 730 Accounts receivable-Candy Cho. 730 (To record collection on account) Sept 20, 2019 Cash ($963 - $107) 856 Accounts receivable-Jim Peterson 856 (To record collection on account) Sept 25, 2019 Sales returns and allowances (Entertainment) 200 Sales tax payable 14 Accounts receivable-Mark Navalta 214 (To record sales allowance) Sept 27, 2019 Cash 321 Accounts receivable-Bridgette Huffman 321 (To record collection on account) Sept 29, 2019 Accounts receivable-Mark Navalta 428 Sales revenue (Non-Entertainment) 400 Sales tax payable 28 (To record sales on account) Sept 30, 2019 Cash 12198 Sales revenue (Non-Entertainment) 11400 Sales tax payable 798 (To record cash sales)Related Questions
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