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 $600 plus sales tax of $36.
	4	Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $950 plus sales tax of $57.
	12	Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,100 plus sales tax of $66.
	15	Recorded cash sales for the period from March 1 to March 15 of $6,700 plus sales tax of $402.
	25	Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $900 plus sales tax of $54.
	28	Received a check from Castor Phan of $130 to apply toward his account.
	31	Recorded cash sales for the period from March 16 to March 31 of $3,600 plus sales tax of $216.
	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

Date	Accounts Titles & Explanation	Debit	Credit
2019
March 1	Accounts receivable	$636
	Sales		$600
	Sales tax payable		$36
	(For recording sale of merchandise on credit)
March 4	Accounts receivable	$1007
	Sales		$950
	Sales tax payable		$57
	(For recording sale of merchandise on credit)
March 12	Accounts receivable	$1166
	Sales		$1100
	Sales tax payable		$66
	(For recording sale of merchandise on credit)
March 15	Cash	$7102
	Sales		$6700
	Sales tax payable		$402
	(For recording sale of merchandise on cash)
March 28	Cash or Bank	$130
	Accounts receivable		$130
	(For recording receipt of check from Castor Phan)
March 31	Cash	$3816
	Sales		$3600
	Sales tax payable		$216
	(For recording sale of merchandise on cash)
March 31	Cash	$636
	Accounts receivable		$636
	(For recording receipt of cash from Dave Allen)

Cash
Date	Debit	Credit
March 15	$7102
March 28	$130
March 31	$3816
March 31	$636
	Ending balance $11684

Accounts Receivable
Date	Debit	Credit
March 1	$636
March 4	$1107
March 12	$1166
March 31		$636
	Ending balance $2273

Sales Tax Payable
Date	Debit	Credit
March 1		$36
March 4		$57
March 12		$66
March 15		$402
March 31		$216
		Ending balance $777

Sales
Date	Debit	Credit
March 1		$600
March 4		$950
March 12		$1100
March 15		$6700
March 31		$3600
		Ending balance $12950

Total cash receipt during March = $11684