Question

Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. TRANSACTIONS DATE 2019 April 2 Sold merchandise for cash, $1,300 plus sales tax. 3 The customer purchasing merchandise for cash on April 2 returned $100 of the merchandise; provided a cash refund to the customer. 4 Sold merchandise on credit to Jordan Clark; issued Sales slip 908 for $850 plus tax, terms n/30. 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $50 plus tax. The original sale was made on Sales $lip 908 of April 4. 3e Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6. View transaction list Journal entry worksheet 1 2 3 5 Sold merchandise for cash, $1,300 plus sales tax. Note: Enter debits before credits.

Answer 1

Date 2019 General Journal Debit Credit Apr. 2 Cash $1,404 Sales Sales Tax (To record Payable merchandise $1,300 $ 104 sold) Apr. o3 $100 Sales returns and allowances Sales tax payable Cash (To record merchandise returned) $108 Apr. 04 $ 918 Accounts Receivable dales Sales Tax Payable (To record merchandise $850 sold) Apr. of sales returns and allowances $50 Sales Tax payable $ 4 Accounts Receivable (To record damage merchandise returned) $ 54 Apr. 30 cash $864 Accounts Receivable (To record payment received) $864

Calculation: Apr. 2: sales tax Payable = $1,300 X 8% = $104 Apr. 3: sales tax Payable = $ 100 x 8% Apr. 4: Sales tax payable = $850 X 8% = $68 Apre 6! Sales tax payable = $50 X 8% = $4 Apr. 30: Cash = Accounts Receivable of Apr ou – Accounts Receivable of Apr. ob = $918 – $54 - $864