Question

Read the description of following transactions that are required during the accounting period for Mario's Electronics. A. Sold $2,200 in merchandise on credit. The transaction did not involve sales tax. B. Gave a $600 allowance to a credit customer for damaged merchandise. The original sale was subject to 8% sales tax. C. Received a check for $200 from a credit customer on account. D. Sold $200 in merchandise for cash. The transaction is subject to 8% sales tax. E. Accepted a return of $100 in merchandise from a credit customer. The original sale was subject to 8% sales tax. Record the general journal entries for the above transactions. (Round your answer to the nearest whole number.) View transaction list Journal entry worksheet 2 3 4 5 Sold $2,200 in merchandise on credit. The transaction did not involve sales tax. Note: Enter debits before credits. Date Account Title Debit Debit Credit A Record entry Clear entry View general journal

Answer 1

Mario's Electronics Journal entries Date Account A Accounts Receivable Sales Credit Calculation Debit $ 2,200 $ 2,200 Sales Returns & Allowances Sales Tax Payable Accounts Receivable $ $ 600 48 =600*8% $ 648 $ 200 Cash Accounts Receivable $ 200 $ 216 Cash Sales Sales Tax Payable $ $ 200 16 =200*8% Sales Returns & Allowances Sales Tax Payable Accounts Receivable $ $ 100 8 =100*8% $ 108