Question

Sales Journal, Cash Receipts Journal, and General Journal

Owens Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax. Beginning general ledger account balances were Cash, $9,741; and Accounts Receivable, $1,058.25. Beginning customer account balances were Thompson Group, $1,058.25.

Mar. 1		Sold merchandise to Able & Co., $1,800, plus sales tax. Sale No. 33C.
3		Sold merchandise to R. J. Kalas, Inc., $2,240, plus sales tax. Sale No. 33D.
5		Able & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $30, plus sales tax.
7		Made cash sales for the week, $3,160, plus sales tax.
10		Received payment from Able & Co. for Sale No. 33C less Credit Memo No. 66.
11		Sold merchandise to Blevins Bakery, $1,210, plus sales tax. Sale No. 33E.
13		Received payment from R. J. Kalas, Inc. for Sale No. 33D.
14		Made cash sales for the week, $4,200, plus sales tax.
16		Blevins Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $44, plus sales tax.
18		Sold merchandise to R. J. Kalas, Inc., $2,620, plus sales tax. Sale No. 33F.
20		Received payment from Blevins Bakery for Sale No. 33E less Credit Memo No. 67.
21		Made cash sales for the week, $2,400, plus sales tax.
25		Sold merchandise to Blevins Bakery, $1,915, plus sales tax. Sale No. 33G.
27		Sold merchandise to Thompson Group, $2,016, plus sales tax. Sale No. 33H.
28		Made cash sales for the week, $3,500, plus sales tax.

Required:

1. Record the transactions in the sales journal, cash receipts journal, and general journal. Total the columns at the end of the month.

page: 6

	DATE	SALE NO.	TO WHOM SOLD	POST. REF.			ACCOUNTS RECEIVABLE DEBIT	SALES CREDIT	SALES TAX PAYABLE CREDIT
1				√						1
2				√						2
3				√						3
4				√						4
5				√						5
6				√						6
7										7
8							(122)	(401)	(231)	8

Verify that the total of the debit columns equals the total of the credit columns.

Debit total:
Credit total:

Cash Receipts Journal							Page 9
Date	Account Credited	Post. Ref.	General Credit	Accounts Receivable Credit	Sales Credit	Sales Tax Payable Credit	Cash Debit
20--		√
		√
		√
		√
		√
		√
		√
				(122)	(401)	(231)	(101)

Verify that the total of the debit columns equals the total of the credit columns.

Debit total:
Credit total:

Enter the posting references when you complete part 2.

GENERAL JOURNAL				PAGE 5
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
	Credit Memo #66
	Credit Memo #67

2. Post from the journals to the general ledger and accounts receivable ledger accounts.

ACCOUNT	Cash				ACCOUNT NO.	101
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 1	Balance	√			9,741.00

ACCOUNT	Accounts Receivable				ACCOUNT NO.	122
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 1	Balance	√			1,058.25

ACCOUNT	Sales Tax Payable				ACCOUNT NO.	231
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--

ACCOUNT	Sales				ACCOUNT NO.	401
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--

ACCOUNT	Sales Returns and Allowances				ACCOUNT NO.	401.1
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--

Answer 1

1.

1	Sales Journal
	DATE	SALE NO.	TO WHOM SOLD	POST REF.	ACCOUNTS RECEIVABLE DEBIT	SALES CREDIT	SALES TAX PAYABLE CREDIT
1	Mar. 1	33C	Able & Co.	√	1944.00	1800.00	144.00
2	Mar. 3	33D	R. J. Kalas, Inc.	√	2419.20	2240.00	179.20
3	Mar. 11	33E	Blevins Bakery	√	1306.80	1210.00	96.80
4	Mar. 18	33F	R. J. Kalas, Inc.	√	2829.60	2620.00	209.60
5	Mar. 25	33G	Blevins Bakery	√	2068.20	1915.00	153.20
6	Mar. 27	33H	Thompson Group	√	2177.28	2016.00	161.28
7					12745.08	11801.00	944.08
8					(122)	(401)	(231)

Debit total:	$             12,745.08
Credit total:	$             12,745.08

Cash Receipts Journal
Date	Account Credited	Post. Ref	General Credit	Accounts Receivable Credit	Sales Credit	Sales Tax Payable Credit	Cash Debit
20-- Mar. 7					3160.00	252.80	3412.80
Mar. 10	Able & Co.	√		1911.60			1911.60
Mar. 13	R. J. Kalas, Inc.	√		2419.20			2419.20
Mar. 14					4200.00	336.00	4536.00
Mar. 20	Blevins Bakery	√		1259.28			1259.28
Mar. 21					2400.00	192.00	2592.00
Mar. 28					3500.00	280.00	3780.00
				5590.08	13260.00	1060.80	19910.88

Debit total:	$             19,910.88
Credit total:	$             19,910.88

GENERAL JOURNAL				PAGE 5
DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
20--
Mar. 5	Sales returns and allowances	401.1	30.00
	Sales tax payable	231	2.40
	Accounts receivable-Able & Co.	122		32.40
	Credit Memo #66
Mar. 16	Sales returns and allowances	401.1	44.00
	Sales tax payable	231	3.52
	Accounts receivable-Blevins Bakery	122		47.52
	Credit Memo #66

2.

Account	Cash			ACCOUNT NO.		101
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 1	Balance	√			9741.00
Mar. 31		CR9	19910.88		29651.88
Account	Accounts Receivable			ACCOUNT NO.		122
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 1	Balance	√			1058.25
Mar. 5		J5		32.40	1025.85
Mar. 16		J5		47.52	978.33
Mar. 31		S6	12745.08		13723.41
Mar. 31		CR9		5716.44	8006.97
Account	Sales Tax Payable			ACCOUNT NO.		231
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 5		J5	2.40		2.40
Mar. 16		J5	3.52		5.92
Mar. 31		S6		944.08		938.16
Mar. 31		CR9		1060.80		1998.96
Account	Sales			ACCOUNT NO.		401
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 31		S6		11801.00		11801.00
Mar. 31		CR9		13260.00		25061.00
Account	Sales Returns and Allowances			ACCOUNT NO.		401.1
					BALANCE
DATE	ITEM	POST. REF.	DEBIT	CREDIT	DEBIT	CREDIT
20--
Mar. 5		J5	30.00		30.00
Mar. 16		J5	44.00		74.00