Question

The Elegant Table sells china, glassware, and other gift items that are subject to an 8 percent sales tax. The transactions shown below took place during November 2019. DATE TRANSACTIONS Nov 1 Sold china to Pauline Judge; issued Sales Slip 1001 for $1,325 plus $106 sales tax. 5 Sold a brass serving tray to Janet Hutchison; issued Sales Slip 1002 for $1,925 plus $154 sales tax. 6 Sold a vase to Charles Brown; issued Sales Slip 1003 for $525 plus $42 sales tax. 10 Sold a punch bowl and glasses to Lisa Morgan; issued Sales Slip 1004 for $1,525 plus $122 sales tax. 14 Sold a set of serving bowls to Dorothy Watts; issued Sales Slip 1005 for $375 plus $30 sales tax. 17 Gave Lisa Morgan an allowance because of a broken glass discovered when unpacking the punch bowl and glasses sold on November 10, Sales Slip 1004; issued Credit Memorandum 102 for $172, which includes sales tax of $13. 21 Sold a coffee table to Teresa Yu; issued Sales Slip 1006 for $3,025 plus $242 sales tax. 24 Sold sterling silver teaspoons to Henry Okafor; issued Sales Slip 1007 for $425 plus $34 sales tax. 25 Gave Teresa Yu an allowance for scratches on her coffee table sold on November 21, Sales Slip 1006; issued Credit Memorandum 103 for $391, which includes $29 in sales tax. 30 Sold a clock to Elaine Brock; issued Sales Slip 1008 for $3,625 plus $290 sales tax. Required: Record the transactions for November in the proper journal. Post to the accounts receivable ledger. Post the amounts from the general journal daily. Post the sales journal amount as a total at the end of the month. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable control account with the total of the schedule. Analyze: Which customer has the highest balance owed at November 30, 2019?

Answer 1

(in $) Debit 1,431.00 (in $) Credit Date Nov-01 Journal (Sales Journal) Particulars Reference No. Accounts Receivable Sales 1001 Sales Tax Collected (To record sale of China to Pauline Judge on account) 1,325.00 106.00 Nov-05 2,079.00 Accounts Receivable Sales 1002 Sales Tax Collected (To record sale of Brass Serving Tray to Janet Hutchison on account) 1,925.00 154.00 Nov-06 567.00 Accounts Receivable Sales 1003 Sales Tax Collected (To record sale of vase to Charles Brown on account) 525.00 42.00 Nov-10 1,647.00 Accounts Receivable Sales 1004 Sales Tax Collected (To record sale of Punch Bowl and glasses to Lisa Morgan on account) 1,525.00 122.00 Nov-14 405.00 Accounts Receivable Sales 1005 Sales Tax Collected (To record sale of serving bowls to Dorothy Watts on account) 375.00 30.00 Nov-17 102 158.79 13.21 Sales Returns Sales Tax Collected Accounts Receivable (To record return made by Lisa Morgan) 172.00

Nov-21 3,267.00 Accounts Receivable Sales 1006 Sales Tax Collected (To record sale of coffee table to Teresa Yu on account) 3,025.00 242.00 Nov-24 459.00 Accounts Receivable Sales 1007 Sales Tax Collected (To record sale of sterling silver teaspoons to Henry Okafor on account) 425.00 34.00 Nov-25 103 362.00 29.00 Sales Returns Sales Tax Collected Accounts Receivable (To record return made by Teresa Yu) 391.00 Nov-30 3,915.00 Accounts Receivable Sales 1008 Sales Tax Collected (To record sale of clock to Elaine Brock on account) 3,625.00 290.00 Sales Book Invoice Date Nov-01 Nov-05 Nov-06 $ $ Invoice No. Customer Name 1001 Pauline Judge 1002 Janet Hutchison 1003 Charles Brown 1004 Lisa Morgan 1005 Dorothy Watts 1006 Teresa Yu 1007 Henry Okafor 1008 Elaine Brock Nov-10 Sale Amount 1,325 $ 1,925 $ 525 $ 1,525 $ 375 $ 3,025 $ 425$ 3,625 $ 12,750 $ Sales Tax 106 $ 154 $ 42 $ 122 $ 30 $ 242 $ 34 $ 290 $ 1,020 $ Total Amount 1,431 2,079 567 1,647 405 3,267 459 3,915 13,770 Nov-14 Nov-21 Nov-24 Nov-30 Total

Schedule of Account Receivable Invoice No. Customer Name Return allowance Payment Payment Net Balance Invoice Date Invoice Amount Credit Note No. amount Date amount due $ $ 102 $ 172.00 1001 1002 1003 1004 1005 1006 1007 1008 Pauline Judge Janet Hutchison Charles Brown Lisa Morgan Dorothy Watts Teresa Yu Henry Okafor Elaine Brock Nov-01 Nov-05 Nov-06 Nov-10 Nov-14 Nov-21 Nov-24 Nov-30 Total 1,431 2,079 567 1,647 405 3,267 459 3,915 13,770 $ 1,431 2,079 567 1,475 405 2,876 459 3,915 13,207 103 $ $ $ $ $ $ $ 391.00 $ $ $ 563 $ - Sales Book and Account Receivable Reconciliation Total Sales Amount $ (-) Total Returns allowed Ş Net Accounts Receivable Amount $ 13,770 -563 13,207 The Customer Elaine Brock has the maximum Accounts Receivable balance of $ 13,207 as on November 30, 2019.