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.

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		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 $9,200 plus sales tax of $644.
	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 $2,000 plus sales tax of $140.
	18		Received $760 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 $600 plus sales tax of $42.
	30		Recorded cash sales for the period from September 16 to September 30 of $11,700 plus sales tax of $819.

  

GENERAL LEDGER ACCOUNTS

101	Cash		401	Sales
111	Accounts Receivable		421	Sales Returns and Allowances
221	Sales Tax Payable GENERAL LEDGER ACCOUNTS 101 Cash 401 Sales 111 Accounts Receivable 421 Sales Returns and Allowances 221 Sales Tax Payable ACCOUNTS RECEIVABLE LEDGER ACCOUNTS Candy Cho Jim Peterson Bridgette Huffman Kathy Sundstrand Mark Navalta 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. Analyze: What is the amount of sales tax owed at September 30, 2019?

Answer 1

Date/S.N	Particulars	Slip	Credit ($)	Credit ($)
1	Candy Cho Sales Sales Tax Payable	S.S. 101	3,210.00	......... 3,000.00 210.00
2	Jim Peterson Sales Sales Tax Payable	S.S. 102	963.00	........ 900.00 63.00
3	Bridgette Huffman Sales Sales Tax Payable	S.S. 103	214.00	........ 200.00 14.00
4	Sales Return and Allowances Sales Tax Payable Jim Peterson	C.M. 101	100.00 7.00	........ ........ 107.00
5	Cash Sales Sales Tax Payable	-	9,844.00	........ 9,200.00 644.00
6	Kathy Sundstrand Sales Sales Tax Payable	S.S. 104	535.00	........ 500.00 35.00
7	Mark Navalta Sales Sales Tax Payable	S.S. 105	2,140.00	........ 2,000.00 140.00
8	Cash Candy Cho	-	760.00	........ 760.00
9	Cash Jim Peterson	-	856.00	........ 856.00
10	Sales Return and Allowances Sales Tax Payable Mark Navalta	C.M. 102	200.00 14.00	........ ........ 214.00
11	Cash Bridgette Huffman	-	214.00	........ 214.00
12	Mark Navalta Sales Sales Tax Payable	S.S. 106	642.00	........ 600.00 42.00
13	Cash Sales Sales Tax Payable	-	12,519.00	........ 11,700.00 819.00

CASH
Particulars	Debit	Particulars	Credit
Sales	9,200.00	Balance c/d	23979
Sales Tax Payable	644.00
Candy Cho	760.00
Jim Peterson	856.00
Sales	11,700.00
Sales Tax Payable	819.00
TOTAL	23,979.00	TOTAL	23,979.00

SALES
Particulars	Debit	Particulars	Credit
Income Statement (P/L)	28,100.00	Candy Cho	3,000.00
		Jim Peterson	900.00
		Bridgette Huffman	200.00
		Cash	9,200.00
		Kathy Sundstrand	500.00
		Mark Navalta	2,000.00
		Mark Navalta	600.00
		Cash	11,700.00
TOTAL	28,100.00	TOTAL	28,100.00

SALES RETURN AND ALLOWANCE
Particulars	Debit	Particulars	Credit
Jim Peterson	100.00	Income Statement (P/L)	300
Mar Navalta	200.00
TOTAL	300.00	TOTAL	300.00

SALES TAX PAYABLE
Particulars	Debit	Particulars	Credit
Jim Peterson	7.00	Candy Cho	210.00
Mark Navalta	14.00	Jim Peterson	63.00
Balance Carried Forward	1,946.00	Bridgette Huffman	14.00
		Cash	644.00
		Kathy Sundstrand	35.00
		Mark Navalta	140.00
		Mark Navalta	42.00
		Cash	819.00
TOTAL	1,967.00	TOTAL	1,967.00

CANDY CHO
Particulars	Debit	Particulars	Credit
Sales	3,000.00	Cash	760.00
Sales Tax Payable	210.00	Balance c/d	2,450.00
TOTAL	3,210.00	TOTAL	3,210.00

JIM PETERSON
Particulars	Debit	Particulars	Credit
Sales	900.00	Sales Return And Allowance	100.00
Sales Tax Payable	63.00	Sales Tax Payable	7.00
		Cash	856.00
TOTAL	963.00	TOTAL	963.00

BRIDGETTE HUFFMAN
Particulars	Debit	Particulars	Credit
Sales	200.00	Cash	214.00
Sales Tax Payable	14.00
TOTAL	214.00	TOTAL	214.00

KATHY SUNDSTRAND
Particulars	Debit	Particulars	Credit
Sales	500.00	Balance c/d	535.00
Sales Tax Payable	35.00
TOTAL	535.00	TOTAL	535.00

MARK NAVALTA
Particulars	Debit	Particulars	Credit
Sales	2,000.00	Sales Return And Allowance	200.00
Sales Tax Payable	140.00	Sales Tax Payable	14.00
Sales	600.00	Balance c/d	2,568.00
Sales Tax Payable	42.00
TOTAL	2,782.00	TOTAL	2,782.00