Question

Record the following transactions of Fashion Park in a general journal. Fashion Park must charge 8 percent sales tax on all sales. The company uses the perpetual inventory system.

Date.       Transactions
April 2-    Sold Merchandise for cash, $2560 plus sales tax. The cost of merchandise sold was $1650
April 3- The customer purchasing merchandise for cash on April 2 returned $325 of the merchandise; provided a cash refund to the customer. The cost of returned merchandise was $225.
April 4- Sold merchandise on credit to Jordan Clark; issues sales slip 908 for $1200 plus tax, terms n/30. The cost of the merchandise sold was $1200.
April 6- Accepted return of merchandise from Jordan Clark; issues credit memorandum 302 for $225 plus tax. The original sale was made on sales slip 908 on April 4. The cost of returned merchandise was $240.
April 30- Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

Enter in the journal:
1. Sold merchandise for cash, $2650 plus sales tax.
2. The cost of merchandise sold was $1650
3. The customer purchasing merchandise for cash on April 2 returned $325 of the merchandise; provided a cash refund to the customer.
4. The cost of returned merchandise was $225.
5. Sold merchandise on credit to Jordan Clark; issued sales slip 908 for $ 1200 plus tax, terms n/30.
6. The cost of rhe merchandise sold was $705.
7. Accepted return of merchandise from Jordan Clark; issued credit memorandum 302 for $225 plus tax. The original sale was made on sales slip 908 of April 4.
8. The cost of returned merchandise was $240.
9. Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

Answer 1

1	Cash	$ 2,862.00
	Sales		$ 2,650.00
	Sales Tax Payable		$     212.00
2	Cost of Goods Sold	$ 1,650.00
	Merchandise Inventory		$ 1,650.00
3	Sales Return	$     325.00
	Sales Tax Payable	$        26.00
	Cash		$     351.00
4	Merchandise Inventory	$     225.00
	Cost of Goods Sold		$     225.00
5	Accounts Receivable	$ 1,296.00
	Sales		$ 1,200.00
	Sales Tax Payable		$        96.00
6	Cost of Goods Sold	$     705.00
	Merchandise Inventory		$     705.00
7	Sales Return	$     225.00
	Sales Tax Payable	$        18.00
	Accounts Receivable		$     243.00
8	Merchandise Inventory	$     240.00
	Cost of Goods Sold		$     240.00
9	Cash	$ 1,053.00
	Accounts Receivable		$ 1,053.00