Question

Problem 7.1A Recording sales and cash receipts for a retail store. LO 7-1, 7-4 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 $550 plus sales tax of $33. 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 $1,150 plus sales tax of $69. 15 Recorded cash sales for the period from March 1 to March 15 of $6,100 plus sales tax of $366. 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 $270 to apply toward his account. 31 Recorded cash sales for the period from March 16 to March 31 of $3,000 plus sales tax of $180. 31 Received payment in full from Dave Allen for the sale of March 1. Required: 1. Record the transactions in a general journal. 2. Post the entries from the general journal to the appropriate general ledger accounts

Answer 1

Credit Ans 2 Ans 1 Date Mar 1 Debit $583 $550 $33 Cash Debit $6,436 $270 $3,180 $583 Date Mar 15 Mar 28 Mar 31 Mar 31 Account No. 101 Credit Balance $6,436 $6,706 $9,886 $10,469 Mar 4 $901 Accounts Receivable Account No. 111 Date Debit Credit Balance Mar 1 $583 $583 Mar 4 $901 $1,484 Mar 12 $1,219 $2,703 Mar 25 $848 $3,551 Mar 28 $270 $3,281 Mar 31 $583 $2,698 $850 $51 Mar 12 $1,219 $1,150 $69 Mar 15 $6,436 Account Title Accounts Receivable Sales Sales Tax Payable Accounts Receivable Sales Sales Tax Payable Accounts Receivable Sales Sales Tax Payable Cash Sales Sales Tax Payable Accounts Receivable Sales Sales Tax Payable Cash Accounts Receivable Cash Sales Sales Tax Payable Cash Accounts Receivable $6,100 $336 Mar 25 $848 $51 Sales Tax Payable Date Debit Mar 1 Mar 4 Mar 12 Mar 15 Mar 25 Mar 31 Account No. 221 Credit Balance $33 $33 $84 $153 $336 $489 $48 $717 Sales Date Debit Mar 1 Mar 4 Mar 12 Mar 15 Mar 25 Mar 31 Account No. 401 Credit Balance $550 $550 $850 $1,400 $1,150 $2,550 $6,100 $8,650 $800 $9,450 $3,000 $12,450 $69 $800 $48 Mar 28 $270 $537 $270 $180 Mar 31 $3,180 $3,000 $180 Mar 31 $583 $583