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

ID: 2409051 • 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 $3,300 plus sales tax of $231.

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 $300 plus sales tax of $21.

Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.

Recorded cash sales for the period from September 1 to September 15 of $8,900 plus sales tax of $623.

Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $600 plus sales tax of $42.

Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,300 plus sales tax of $161.

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 $400 plus sales tax of $28.

Recorded cash sales for the period from September 16 to September 30 of $12,000 plus sales tax of $840.

  

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?

DATE TRANSACTIONS 2019 Sept. 1

Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,300 plus sales tax of $231.

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 $200 plus sales tax of $14. The stereo equipment was sold on September 3.

15

Recorded cash sales for the period from September 1 to September 15 of $8,900 plus sales tax of $623.

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 $2,300 plus sales tax of $161.

18 Received $790 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 $12,000 plus sales tax of $840.

Required: 2. Post the entries from the general journal into the approprlate accounts in the general ledger and in the accounts receivable leder 3. Prepare a schedule of accounts receivable. Analyze: What is the amount of sales tax owed at September 30, 2019? Complete this question by entering your answers in the tabs below. Schedule of General Ledgers AR Analyze Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger. GENERAL LEDGER Cash Account No. 101 Accounts Receivable Account No. 111 Date Debit Credit Balance Date Debit Credit Balance Prey 1 of 2 Next >

Explanation / Answer

Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Sep Accounts receivable - Candy Cho      3,531.00    Sales      3,300.00    Sales Tax Payable          231.00 (To record the sales) 3-Sep Accounts receivable - Jim Peterson          963.00    Sales          900.00    Sales Tax Payable            63.00 (To record the sales) 7-Sep Accounts receivable - Bridgette Huffman          321.00    Sales          300.00    Sales Tax Payable            21.00 (To record the sales) 12-Sep Sales Return & Allowances          200.00 Sales Tax Payable            14.00    Accounts receivable - Jim Peterson          214.00 (To record the sales return) 15-Sep Cash      9,523.00    Sales      8,900.00    Sales Tax Payable          623.00 (To record the sales) 16-Sep Accounts receivable - Kathy Sundstrand          642.00    Sales          600.00    Sales Tax Payable            42.00 (To record the sales) 17-Sep Accounts receivable - Mark Navalta      2,461.00    Sales      2,300.00    Sales Tax Payable          161.00 (To record the sales) 18-Sep Cash          790.00    Accounts receivable - Candy Cho          790.00 (To record the cash received) 20-Sep Cash          749.00    Accounts receivable - Jim Peterson          749.00 (To record the cash received) 25-Sep Sales Return & Allowances          200.00 Sales Tax Payable            14.00    Accounts receivable - Mark Navalta          214.00 (To record the sales allowance) 27-Sep Cash          321.00    Accounts receivable - Bridgette Huffman          321.00 (To record the cash received) 29-Sep Accounts receivable - Mark Navalta          428.00    Sales          400.00    Sales Tax Payable            28.00 (To record the sales) 30-Sep Cash    12,840.00    Sales    12,000.00    Sales Tax Payable          840.00 (To record the sales) Answer 2. GENERAL LEDGER Cash Accounts Receivable Sales Tax Payable Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance 15-Sep      9,523.00      9,523.00 Dr. 1-Sep    3,531.00    3,531.00 Dr. 1-Sep      231.00       231.00 Cr. 18-Sep          790.00    10,313.00 Dr. 3-Sep       963.00    4,494.00 Dr. 3-Sep         63.00       294.00 Cr. 20-Sep          749.00      1,539.00 Dr. 7-Sep       321.00    4,815.00 Dr. 7-Sep         21.00       315.00 Cr. 27-Sep          321.00      1,070.00 Dr. 12-Sep      214.00    4,601.00 Dr. 12-Sep         14.00       301.00 Cr. 30-Sep    12,840.00    13,161.00 Dr. 16-Sep       642.00    5,243.00 Dr. 15-Sep      623.00       924.00 Cr. 17-Sep    2,461.00    7,704.00 Dr. 16-Sep         42.00       966.00 Cr. 18-Sep      790.00    6,914.00 Dr. 17-Sep      161.00    1,127.00 Cr. 20-Sep      749.00    6,165.00 Dr. 25-Sep         14.00    1,113.00 Cr. 25-Sep      214.00    5,951.00 Dr. 29-Sep         28.00    1,141.00 Cr. 27-Sep      321.00    5,630.00 Dr. 30-Sep      840.00    1,981.00 Cr. 29-Sep       428.00    6,058.00 Dr. Sales Sales Return & Allowances Date Debit   Credit Balance Date Debit   Credit Balance 1-Sep      3,300.00      3,300.00 Cr. 12-Sep       200.00       200.00 Dr. 3-Sep          900.00      4,200.00 Cr. 25-Sep       200.00       400.00 Dr. 7-Sep          300.00      4,500.00 Cr. 15-Sep      8,900.00    13,400.00 Cr. 16-Sep          600.00    14,000.00 Cr. 17-Sep      2,300.00    16,300.00 Cr. 29-Sep          400.00    16,700.00 Cr. 30-Sep    12,000.00    28,700.00 Cr. ACCOUNTS RECEIVABLE - SUBSIDIARY LEDGER Candy cho Jim Peterson Bridgette Huffman Date Debit   Credit Balance Date Debit   Credit Balance Date Debit   Credit Balance 1-Sep      3,531.00      3,531.00 Dr. 3-Sep       963.00       963.00 Dr. 7-Sep      321.00       321.00 Dr. 18-Sep          790.00      2,741.00 Dr. 12-Sep      214.00       749.00 Dr. 27-Sep      321.00                 -   Dr. 20-Sep      749.00                 -   Dr. Kathy Sundstrand Mark Navalta Date Debit   Credit Balance Date Debit   Credit Balance 16-Sep          642.00          642.00 Dr. 17-Sep    2,461.00    2,461.00 Dr. 25-Sep      214.00    2,247.00 Dr. 29-Sep       428.00    2,675.00 Dr. Answer 3. EXCEPTIONAL ELECTRONICS Schedule of Accounts Receivables Candy cho    2,741.00 Jim Peterson                 -   Bridgette Huffman                 -   Kathy Sundstrand       642.00 Mark Navalta    2,675.00 Total    6,058.00 Answer 4. Sales Tax Payable    1,981.00