Question

Superior Appliances is a retail store that sells household appliances. Merchandise sales are subject to an 8 percent sales tax. The firm’s credit sales for July are listed below, along with the general ledger accounts used to record these sales. The balance shown for Accounts Receivable is for the beginning of the month. DATE TRANSACTIONS July 1 Sold a dishwasher to John Martinez; issued Sales Slip 501 for $750 plus sales tax of $60. 6 Sold a washer to Helen Thai; issued Sales Slip 502 for $2,025 plus sales tax of $162. 11 Sold a high-definition television set to Richard Jones; issued Sales Slip 503 for $2,200 plus sales tax of $176. 17 Sold an electric dryer to Mary Schneider; issued Sales Slip 504 for $875 plus sales tax of $70. 23 Sold a trash compactor to Victoria Caramello; issued Sales Slip 505 for $500 plus sales tax of $40. 27 Sold a home entertainment system to Jeff Budd; issued Sales Slip 506 for $1,325 plus sales tax of $106. 29 Sold an electric range to Michelle Ly; issued Sales Slip 507 for $1,050 plus sales tax of $84. 31 Sold a double oven to Peter McVay; issued Sales Slip 508 for $225 plus sales tax of $18. GENERAL LEDGER ACCOUNTS 111 Accounts Receivable, $26,500 Dr. 231 Sales Tax Payable 401 Sales Required: Open the general ledger accounts and enter the balance of Accounts Receivable for July 1, 2019. Record the transactions in a sales journal. Total, prove, and rule the sales journal as of July 31. Post the column totals from the sales journal to the proper general ledger accounts. Analyze: What percentage of credit sales were for entertainment items?

Answer 1

Part 2&3

SALES JOURNAL
Date	Sales Slip No.	Customer’s Name	Accounts Receivable Debit	Sales tax Payable Credit	Sales Credit
July 1	501	John Martinez	810	60	750
July 6	502	Helen Thai	2187	162	2025
July 11	503	Richard Jones	2376	176	2200
July 17	504	Mary Schneider	945	70	875
July 23	505	Veronica Caramello	540	40	500
July 27	506	Jeff Budd	1431	106	1325
July 29	507	Michelle Ly	1134	84	1050
July 31	508	Phil Long	243	18	225
July 31	Total	$9666	$716	$8950

Part 4

Accounts Receivable	Account No. 111
Balance
Date	Debit	Credit	Debit	Credit
July 1, 2013			26500
July 31, 2013	9666		36166

Sales Tax payable	Account No. 231
Balance
Date	Debit	Credit	Debit	Credit
July 31, 2013		716		716

Sales	Account No. 401
Balance
Date	Debit	Credit	Debit	Credit
July 31, 2013		8950		8950

Percentage of credit sales for entertainment items = (2200+1325)/8950 = 39.39%