Question

The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:

DATE		TRANSACTIONS
2019
March	1	Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $500 plus sales tax of $30.
	4	Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $850 plus sales tax of $51.
	12	Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,050 plus sales tax of $63.
	15	Recorded cash sales for the period from March 1 to March 15 of $6,200 plus sales tax of $372.
	25	Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $800 plus sales tax of $48.
	28	Received a check from Castor Phan of $260 to apply toward his account.
	31	Recorded cash sales for the period from March 16 to March 31 of $3,100 plus sales tax of $186.
	31	Received payment in full from Dave Allen for the sale of March 1.

Required:

Record the transactions in a general journal.

Post the entries from the general journal to the appropriate general ledger accounts.

GENERAL LEDGER ACCOUNTS
101	Cash	221	Sales Tax Payable
111	Accounts Receivable	401	Sales

Analyze:
What were the total cash receipts during March?

Answer 1

Journal Entries
Date	Accounts and Explanations	Instrument Number	Debit	Credit
1-Mar	Accounts Receivables	101	$        530.00
	Sales			$        500.00
	Sales Tax			$          30.00
	(sales revenue and sales tax recorded)
4-Mar	Accounts Receivables	102	$        901.00
	Sales			$        850.00
	Sales Tax			$          51.00
	(sales revenue and sales tax recorded)
12-Mar	Accounts Receivables	103	$    1,113.00
	Sales			$    1,050.00
	Sales Tax			$          63.00
	(sales revenue and sales tax recorded)
15-Mar	Cash		$    6,572.00
	Sales			$    6,200.00
	Sales Tax			$        372.00
	(sales revenue and sales tax recorded)
25-Mar	Accounts Receivables	104	$        848.00
	Sales			$        800.00
	Sales Tax			$          48.00
	(sales revenue and sales tax recorded)
28-Mar	Cash		$        260.00
	Accounts Receivables			$        260.00
	(payment Received from Customer)
31-Mar	Cash		$    3,286.00
	Sales			$    3,100.00
	Sales Tax			$        186.00
	(sales revenue and sales tax recorded)
31-Mar	Cash		$        530.00
	Accounts Receivables			$        530.00
	(payment Received from Customer)
			$ 14,040.00	$ 14,040.00

Cash (101)
15-Mar	Sales	$    6,200.00	31-Mar	Closing Balance	$ 10,648.00
15-Mar	Sales Tax	$        372.00
28-Mar	Accounts Receivables	$        260.00
31-Mar	Sales	$    3,100.00
31-Mar	Sales Tax	$        186.00
31-Mar	Accounts Receivables	$        530.00
		$ 10,648.00			$ 10,648.00

Sales Tax Payable (221)
31-Mar	Closing Balance	$        750.00	1-Mar	Accounts Receivables	$          30.00
			4-Mar	Accounts Receivables	$          51.00
			12-Mar	Accounts Receivables	$          63.00
			15-Mar	Cash	$        372.00
			25-Mar	Accounts Receivables	$          48.00
			31-Mar	Cash	$        186.00
		$        750.00			$        750.00

Accounts Receivable( 111)
1-Mar	Accounts Receivables	$        530.00	28-Mar	Cash	$        260.00
4-Mar	Accounts Receivables	$        901.00	31-Mar	Cash	$        530.00
12-Mar	Accounts Receivables	$    1,113.00	31-Mar	Closing Balance	$    2,602.00
25-Mar	Accounts Receivables	$        848.00
		$    3,392.00			$    3,392.00

Sales(401)
31-Mar	Closing Balance	$ 12,500.00	1-Mar	Accounts Receivables	$        500.00
			4-Mar	Accounts Receivables	$        850.00
			12-Mar	Accounts Receivables	$    1,050.00
			15-Mar	Cash	$    6,200.00
			25-Mar	Accounts Receivables	$        800.00
			31-Mar	Cash	$    3,100.00
		$ 12,500.00			$ 12,500.00

Total Cash Receipts During March = $ 10648