Question
In: Accounting
Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
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:
| DATE | TRANSACTIONS | |
| 2019 | ||
| Sept. | 1 | Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,700 plus sales tax of $189. |
| 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 $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 $9,500 plus sales tax of $665. | |
| 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 $1,700 plus sales tax of $119. | |
| 18 | Received $730 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 $11,400 plus sales tax of $798. | |
Required:
Record the transactions in a general journal.
Analyze:
What portion of the sales during September were for entertainment
items? Assume the cash sales transactions are for non-entertainment
items. (Hint: Do not forget to reduce sales by any sales returns or
allowances.)
Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $2,700 plus sales tax of $189.
Note: Enter debits before credits.
|
Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $900 plus sales tax of $63.
Note: Enter debits before credits.
|
Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $300 plus sales tax of $21.
Note: Enter debits before credits.
|
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.
Note: Enter debits before credits.
|
Recorded cash sales for the period from September 1 to September 15 of $9,500 plus sales tax of $665.
Note: Enter debits before credits.
|
Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $600 plus sales tax of $42.
Note: Enter debits before credits.
|
Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,700 plus sales tax of $119.
Note: Enter debits before credits.
|
Received $730 from Candy Cho on account.
Note: Enter debits before credits.
|
Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
Note: Enter debits before credits.
|
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.
Note: Enter debits before credits.
|
Received payment in full from Bridgette Huffman for the sale of September 7.
Note: Enter debits before credits.
|
Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $400 plus sales tax of $28.
Note: Enter debits before credits.
|
Recorded cash sales for the period from September 16 to September 30 of $11,400 plus sales tax of $798.
Note: Enter debits before credits.
|
Solutions
Expert Solution
| Date | General Journal | Debit | Credit |
| Sept 01, 2019 | Accounts receivable-Candy Cho. | 2889 | |
| Sales revenue (Entertainment) | 2700 | ||
| Sales tax payable | 189 | ||
| (To record sales on account) | |||
| Sept 03, 2019 | Accounts receivable-Jim Peterson | 963 | |
| Sales revenue (Entertainment) | 900 | ||
| Sales tax payable | 63 | ||
| (To record sales on account) | |||
| Sept 07, 2019 | Accounts receivable-Bridgette Huffman | 321 | |
| Sales revenue (Non-Entertainment) | 300 | ||
| Sales tax payable | 21 | ||
| (To record sales on account) | |||
| Sept 12, 2019 | Sales returns and allowances (Entertainment) | 100 | |
| Sales tax payable | 7 | ||
| Accounts receivable-Jim Peterson | 107 | ||
| (To record sales returns) | |||
| Sept 15, 2019 | Cash | 10165 | |
| Sales revenue (Non-Entertainment) | 9500 | ||
| Sales tax payable | 665 | ||
| (To record cash sales) | |||
| Sept 16, 2019 | Accounts receivable-Kathy Sundstrand | 642 | |
| Sales revenue (Non-Entertainment) | 600 | ||
| Sales tax payable | 42 | ||
| (To record sales on account) | |||
| Sept 17, 2019 | Accounts receivable-Mark Navalta | 1819 | |
| Sales revenue (Entertainment) | 1700 | ||
| Sales tax payable | 119 | ||
| (To record sales on account) | |||
| Sept 18, 2019 | Cash | 730 | |
| Accounts receivable-Candy Cho. | 730 | ||
| (To record collection on account) | |||
| Sept 20, 2019 | Cash ($963 - $107) | 856 | |
| Accounts receivable-Jim Peterson | 856 | ||
| (To record collection on account) | |||
| Sept 25, 2019 | Sales returns and allowances (Entertainment) | 200 | |
| Sales tax payable | 14 | ||
| Accounts receivable-Mark Navalta | 214 | ||
| (To record sales allowance) | |||
| Sept 27, 2019 | Cash | 321 | |
| Accounts receivable-Bridgette Huffman | 321 | ||
| (To record collection on account) | |||
| Sept 29, 2019 | Accounts receivable-Mark Navalta | 428 | |
| Sales revenue (Non-Entertainment) | 400 | ||
| Sales tax payable | 28 | ||
| (To record sales on account) | |||
| Sept 30, 2019 | Cash | 12198 | |
| Sales revenue (Non-Entertainment) | 11400 | ||
| Sales tax payable | 798 | ||
| (To record cash sales) |
Note: Sales revenue and sales returns and allowances have been identified as entertainment and non-entertainment for ease in understanding of the 'Analyze' portion.
Analyze:
| Sales revenue (Entertainment) | 5300 |
| Less: Sales returns and allowances (Entertainment) | 300 |
| Net sales for entertainment items $ | 5000 |
ekkarill92 answered 1 year agoRelated Solutions
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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.
1
Sold a high-definition television set on credit to Candy Cho;
issued Sales Slip 101 for $3,000 plus sales tax of $210.
3
Sold stereo equipment on credit to Jim Peterson; issued Sales
Slip 102 for $900 plus sales tax of $63.
7
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Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on...
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:
DATE
TRANSACTIONS
2019
Sept.
1
Sold a high-definition
television set on credit to Candy Cho; issued Sales Slip 101 for
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3
Sold stereo equipment on credit
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subject to a 7 percent sales tax. During September, Exceptional
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DATE
TRANSACTIONS
2019
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1
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DATE
TRANSACTIONS
2019
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