Problem

The Furniture Lot is a retail store that specializes in modern living room and dining room...

The Furniture Lot is a retail store that specializes in modern living room and dining room furniture. Merchandise sales are subject to an 8 percent sales tax. The firm’s credit sales and sales returns and allowances for June are reflected below, along with the general ledger accounts used to record these transactions. The balances shown are for the beginning of the month.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balances for June 1.
2. Record the transactions in a sales journal and a general journal. Use 9 as the page number for the sales journal and 26 as the page number for the general journal.
3. Post the entries from the general journal to the general ledger.
4. Total, prove, and rule the sales journal as of June 30.
5. Post the column totals from the sales journal.
6. Prepare the heading and the Revenue section of the firm’s income statement for the month ended June 30, 2013.

GENERAL LEDGER ACCOUNTS

111	Accounts Receivable, $24,150 Dr.
231	Sales Tax Payable, $4,515 Cr.
401	Sales
451	Sales Returns and Allowances

DATE	TRANSACTIONS
June 1	Sold a living room sofa to Kenya Jackson; issued Sales Slip 1601 for $2,525 plus sales tax of $202.
5	Sold three recliners to Carmen Cruz; issued Sales Slip 1602 for $1,500 plus sales tax of $120.
9	Sold a dining room set to Lu Chang; issued Sales Slip 1603 for $6,025 plus sales tax of $482.
11	Accepted a return of a damaged chair from Carmen Cruz; the chair was originally sold on Sales Slip 1602 of June 5; issued Credit Memorandum 215 for $540, which includes sales tax of $40.
17	Sold living room tables and bookcases to Rick Jones; issued Sales Slip 1604 for $4,000 plus sales tax of $320.
23	Sold eight dining room chairs to Demitri Brown; issued Sales Slip 1605 for $2,400 plus sales tax of $192.
25	Gave Rick Jones an allowance for scratches on his bookcases; issued Credit Memorandum 216 for $270, which includes sales taxes of $20; the bookcases were originally sold on Sales Slip 1604 of June 17.
27	Sold a living room sofa and four chairs to Paul Rivera; issued Sales Slip 1606 for $2,575 plus sales tax of $206.
29	Sold a dining room table to Rosie Seltz; issued Sales Slip 1607 for $1,150 plus sales tax of $92.
30	Sold a living room modular wall unit to Jim Mayor; issued Sales Slip 1608 for $3,100 plus sales tax of $248.

Analyze: Based on the beginning balance of the Sales Tax Payable account, what was the amount of total net sales for April and May? (Hint: Sales tax returns are filed and paid to the state quarterly.)