Question

Superior Appliances is a retail store that sells household appliances. Merchandise sales are subject to an 8 percent sales tax. The firm’s credit sales for July are listed below, along with the general ledger accounts used to record these sales. The balance shown for Accounts Receivable is for the beginning of the month. DATE TRANSACTIONS July 1 Sold a dishwasher to John Martinez; issued Sales Slip 501 for $925 plus sales tax of $74. 6 Sold a washer to Helen Thai; issued Sales Slip 502 for $1,875 plus sales tax of $150. 11 Sold a high-definition television set to Richard Jones; issued Sales Slip 503 for $1,625 plus sales tax of $130. 17 Sold an electric dryer to Mary Schneider; issued Sales Slip 504 for $1,275 plus sales tax of $102. 23 Sold a trash compactor to Victoria Caramello; issued Sales Slip 505 for $800 plus sales tax of $64. 27 Sold a home entertainment system to Jeff Budd; issued Sales Slip 506 for $1,725 plus sales tax of $138. 29 Sold an electric range to Michelle Ly; issued Sales Slip 507 for $1,450 plus sales tax of $116. 31 Sold a double oven to Peter McVay; issued Sales Slip 508 for $1,350 plus sales tax of $108. GENERAL LEDGER ACCOUNTS 111 Accounts Receivable, $34,500 Dr. 231 Sales Tax Payable 401 Sales Required: Open the general ledger accounts and enter the balance of Accounts Receivable for July 1, 2019. Record the transactions in a sales journal. Total, prove, and rule the sales journal as of July 31. Post the column totals from the sales journal to the proper general ledger accounts. Analyze: What percentage of credit sales were for entertainment items?

Sales Journal

Ledger Accounts

Analyze

Prepare a sales journal to record the above transactions.

Post the opening balances and column totals from the sales journal into the appropriate general ledger accounts for July 2019.

What percentage of credit sales were for entertainment items? (Round your answer to 2 decimal places.)

	Credit sales for entertainment items %

	Accounts Receivable Account No: 111 Sales Tax Payable Account No: 231 Date Debit Credit Balance Date Debit Credit Balance July 01, 2019 Sales Account No: 401 Date Debit Credit Balance

	SALES JOURNAL Date Sales Slip No Customer's Name Accounts Receivable Debit Sales Tax Payable Credit Sales Credit July 31 Totals $0 $0 $0

Answer 1

SALES JOURNAL
Date	Sales Slip No	Customer's Name	Accounts Receivable Debit	Sales Tax Payable Credit	Sales Credit
Jul-01	501	John Martinez	999	74	925
Jul-06	502	Helen Thai	2025	150	1875
Jul-11	503	Richard Jones	1755	130	1625
Jul-17	504	Mary Schneider	1377	102	1275
Jul-23	505	Victoria Caramello	864	64	800
Jul-27	506	Jeff Budd	1863	138	1725
Jul-29	507	Michelle Ly	1566	116	1450
Jul-31	508	Peter McVay	1458	108	1350
Jul-31		Totals	11907	882	11025

Accounts Receivable		Account No: 111			Sales Tax Payable		Account No: 231
Date	Debit	Credit	Balance		Date	Debit	Credit	Balance
July 01, 2019			34500		July 31, 2019		882	882
July 31, 2019	11907		46407
Sales		Account No: 401
Date	Debit	Credit	Balance
July 31, 2019		11025	11025

Credit sales for entertainment items: 30.39%

Credit sales for entertainment items = $1625 + $1725 = $3350

Credit sales for entertainment items = $3350/$11025 = 30.39%