Question

Record the following transactions of Fashion Park in a general journal Fashion Park must charge 8 percent sales tax on all sales TRANSACTIONS 2019 April Sold merchandise for cash. $1,150 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned sine of the serchandises provided a cash return to the customer Sold merchandise credit to Jordan Cla u d Sales Slip for plus tax, ter accepted return of damaged merchandise from Jordan Clarks Credit Memorandum 3e2 for 50 plus tax. The original wale was made on Sales Slip 18 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6. Vw transactions Journal entry worksheet 2 3 4 5 he us Sale

Answer 1

Answer -

1.

Date	General Journal	Debit	Credit
April 02, 2019	Cash	$1242
	Sales revenue		$1150
	Sales tax payable		$92

Calculation:

Sold merchandise for cash $1150 plus sales tax.

So,

Sales revenue = $1150

Sales tax = Sales revenue * 8%

= $1150 * 8%

= $92

Cash = Sales revenue + Sales tax payable

= $1150 + $92

= $1242

2.

Date	General Journal	Debit	Credit
April 03, 2019	Sales returns and allowances	$100
	Sales tax payable	$8
	Cash		$108

Calculation:

The customer purchasing merchandise for cash on April 2 returned $100 of the merchandise provided a cash refund to the customer.

So,

Sales return and allowance = $100

Sales tax = $100 * 8% = $8

Cash = Sales return and allowance + Sales tax payable

= $100 + $8

= $108

3.

Date	General Journal	Debit	Credit
April 04, 2019	Accounts receivable-Jordan Clark	$756
	Sales revenue		$700
	Sales tax payable		$56

Calculation:

Sold merchandise on credit to Jordan Clark issued sales slip 908 for $700 plus tax term n/30.

So,

Accounts receivable = $700

Sales tax = Sales revenue * 8%

= $700 * 8%

= $56

Cash = Sales revenue + Sales tax payable

= $700 + $56

= $756

4.

Date	General Journal	Debit	Credit
April 06, 2019	Sales returns and allowances	$50
	Sales tax payable	$4
	Accounts receivable		$54

Calculation:

Accepted return of damaged merchandise from Jordan Clark issued credit memorandum 302 for $50 plus tax. The original sale was made on sales slip 908 of April 4.

So,

Sales return and allowance = $50

Sales tax = $100 * 8% = $4

Accounts receivable = Sales return and allowance + Sales tax payable

= $50 + $4

= $54

5.

Date	General Journal	Debit	Credit
April 30, 2019	Cash	$702
	Accounts receivable-Jordan Clark		$702

Calculation:

Received payment on account from Jordan Clark payment of her purchase of april 4, less the return on April 6.

So,

Account receivable (debit balance) on April 4,

= Sales revenue + Sales tax

= $700 + $56

= $756

And

Account receivable (credit balance) on April 6,

= Sales return and allowance + Sales tax payable

= $50 + $4

= $54

Therefore,

Received cash on account from Jordan Clark payment of her purchase,

Cash = Account receivable (debit balance) - Account receivable (credit balance)

Cash = $756 - $54

Cash = $702