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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. 1

Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,300 plus sales tax of $161.

3

Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.

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 $10,700 plus sales tax of $749.

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 $2,300 plus sales tax of $161.

18 Received $690 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 $600 plus sales tax of $42.

30

Recorded 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