Exceptional Electronics began operations September 1, 2019. The firm sells its m
ID: 2529374 • 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 $2,300 plus sales tax of $161.
Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.
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 $10,700 plus sales tax of $749.
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 $2,300 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 $300 plus sales tax of $21
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 $11,000 plus sales tax of $770.
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.
DATE TRANSACTIONS 2019 Sept. 1Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,300 plus sales tax of $161.
3Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.
7Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $200 plus sales tax of $14.
12Accepted 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.
15Recorded cash sales for the period from September 1 to September 15 of $10,700 plus sales tax of $749.
16Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $500 plus sales tax of $35.
17Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,300 plus sales tax of $161.
18 Received $690 from Candy Cho on account. 20Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
25Gave 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 29Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $600 plus sales tax of $42.
30Recorded cash sales for the period from September 16 to September 30 of $11,000 plus sales tax of $770.
Explanation / Answer
Answer 1. Journal Entry Date Particulars Dr. Amt. Cr. Amt. 1-Sep Accounts receivable - Candy Cho 2,461.00 Sales 2,300.00 Sales Tax Payable 161.00 (To record the sales) 3-Sep Accounts receivable - Jim Peterson 1,070.00 Sales 1,000.00 Sales Tax Payable 70.00 (To record the sales) 7-Sep Accounts receivable - Bridgette Huffman 214.00 Sales 200.00 Sales Tax Payable 14.00 (To record the sales) 12-Sep Sales Return & Allowances 100.00 Sales Tax Payable 7.00 Accounts receivable - Jim Peterson 107.00 (To record the sales return) 15-Sep Cash 11,449.00 Sales 10,700.00 Sales Tax Payable 749.00 (To record the sales) 16-Sep Accounts receivable - Kathy Sundstrand 535.00 Sales 500.00 Sales Tax Payable 35.00 (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 690.00 Accounts receivable - Candy Cho 690.00 (To record the cash received) 20-Sep Cash 963.00 Accounts receivable - Jim Peterson 963.00 (To record the cash received) 25-Sep Sales Return & Allowances 300.00 Sales Tax Payable 21.00 Accounts receivable - Mark Navalta 321.00 (To record the sales allowance) 27-Sep Cash 214.00 Accounts receivable - Bridgette Huffman 214.00 (To record the cash received) 29-Sep Accounts receivable - Mark Navalta 642.00 Sales 600.00 Sales Tax Payable 42.00 (To record the sales) 30-Sep Cash 11,770.00 Sales 11,000.00 Sales Tax Payable 770.00 (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 11,449.00 11,449.00 Dr. 1-Sep 2,461.00 2,461.00 Dr. 1-Sep 161.00 161.00 Cr. 18-Sep 690.00 12,139.00 Dr. 3-Sep 1,070.00 3,531.00 Dr. 3-Sep 70.00 231.00 Cr. 20-Sep 963.00 1,653.00 Dr. 7-Sep 214.00 3,745.00 Dr. 7-Sep 14.00 245.00 Cr. 27-Sep 214.00 1,177.00 Dr. 12-Sep 107.00 3,638.00 Dr. 12-Sep 7.00 238.00 Cr. 30-Sep 11,770.00 11,984.00 Dr. 16-Sep 535.00 4,173.00 Dr. 15-Sep 749.00 987.00 Cr. 17-Sep 2,461.00 6,634.00 Dr. 16-Sep 35.00 1,022.00 Cr. 18-Sep 690.00 5,944.00 Dr. 17-Sep 161.00 1,183.00 Cr. 20-Sep 963.00 4,981.00 Dr. 25-Sep 21.00 1,162.00 Cr. 25-Sep 321.00 4,660.00 Dr. 29-Sep 42.00 1,204.00 Cr. 27-Sep 214.00 4,446.00 Dr. 30-Sep 770.00 1,974.00 Cr. 29-Sep 642.00 5,088.00 Dr. Sales Sales Return & Allowances Date Debit Credit Balance Date Debit Credit Balance 1-Sep 2,300.00 2,300.00 Cr. 12-Sep 100.00 100.00 Dr. 3-Sep 1,000.00 3,300.00 Cr. 25-Sep 300.00 400.00 Dr. 7-Sep 200.00 3,500.00 Cr. 15-Sep 10,700.00 14,200.00 Cr. 16-Sep 500.00 14,700.00 Cr. 17-Sep 2,300.00 17,000.00 Cr. 29-Sep 600.00 17,600.00 Cr. 30-Sep 11,000.00 28,600.00 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 2,461.00 2,461.00 Dr. 3-Sep 1,070.00 1,070.00 Dr. 7-Sep 214.00 214.00 Dr. 18-Sep 690.00 1,771.00 Dr. 12-Sep 107.00 963.00 Dr. 27-Sep 214.00 - Dr. 20-Sep 963.00 - Dr. Kathy Sundstrand Mark Navalta Date Debit Credit Balance Date Debit Credit Balance 16-Sep 535.00 535.00 Dr. 17-Sep 2,461.00 2,461.00 Dr. 25-Sep 321.00 2,140.00 Dr. 29-Sep 642.00 2,782.00 Dr. Answer 3. EXCEPTIONAL ELECTRONICS Schedule of Accounts Receivables Candy cho 1,771.00 Jim Peterson - Bridgette Huffman - Kathy Sundstrand 535.00 Mark Navalta 2,782.00 Total 5,088.00 Answer 4. Sales Tax Payable 1,974.00
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