The Appliance Store began operations March 1, 2019. The firm sells its merchandi

Question

The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:

Required:

Record the transactions in a general journal.

Post the entries from the general journal to the appropriate general ledger accounts.

Analyze:
What were the total cash receipts during March?

DATE TRANSACTIONS 2019 March 1 Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $500 plus sales tax of $30. 4 Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $850 plus sales tax of $51. 12 Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,050 plus sales tax of $63. 15 Recorded cash sales for the period from March 1 to March 15 of $6,200 plus sales tax of $372. 25 Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $800 plus sales tax of $48. 28 Received a check from Castor Phan of $260 to apply toward his account. 31 Recorded cash sales for the period from March 16 to March 31 of $3,100 plus sales tax of $186. 31 Received payment in full from Dave Allen for the sale of March 1.

Explanation / Answer

Journal Entries

Date

Accounts and Explanations

Instrument Number

Debit

Credit

1-Mar

Accounts Receivables

101

$        530.00

Sales

$        500.00

Sales Tax

$          30.00

(sales revenue and sales tax recorded)

4-Mar

Accounts Receivables

102

$        901.00

Sales

$        850.00

Sales Tax

$          51.00

(sales revenue and sales tax recorded)

12-Mar

Accounts Receivables

103

$    1,113.00

Sales

$    1,050.00

Sales Tax

$          63.00

(sales revenue and sales tax recorded)

15-Mar

Cash

$    6,572.00

Sales

$    6,200.00

Sales Tax

$        372.00

(sales revenue and sales tax recorded)

25-Mar

Accounts Receivables

104

$        848.00

Sales

$        800.00

Sales Tax

$          48.00

(sales revenue and sales tax recorded)

28-Mar

Cash

$        260.00

Accounts Receivables

$        260.00

(payment Received from Customer)

31-Mar

Cash

$    3,286.00

Sales

$    3,100.00

Sales Tax

$        186.00

(sales revenue and sales tax recorded)

31-Mar

Cash

$        530.00

Accounts Receivables

$        530.00

(payment Received from Customer)

$ 14,040.00

$ 14,040.00

Cash (101)

15-Mar

Sales

$    6,200.00

31-Mar

Closing Balance

$ 10,648.00

15-Mar

Sales Tax

$        372.00

28-Mar

Accounts Receivables

$        260.00

31-Mar

Sales

$    3,100.00

31-Mar

Sales Tax

$        186.00

31-Mar

Accounts Receivables

$        530.00

$ 10,648.00

$ 10,648.00

Sales Tax Payable (221)

31-Mar

Closing Balance

$        750.00

1-Mar

Accounts Receivables

$          30.00

4-Mar

Accounts Receivables

$          51.00

12-Mar

Accounts Receivables

$          63.00

15-Mar

Cash

$        372.00

25-Mar

Accounts Receivables

$          48.00

31-Mar

Cash

$        186.00

$        750.00

$        750.00

Accounts Receivable( 111)

1-Mar

Accounts Receivables

$        530.00

28-Mar

Cash

$        260.00

4-Mar

Accounts Receivables

$        901.00

31-Mar

Cash

$        530.00

12-Mar

Accounts Receivables

$    1,113.00

31-Mar

Closing Balance

$    2,602.00

25-Mar

Accounts Receivables

$        848.00

$    3,392.00

$    3,392.00

Sales(401)

31-Mar

Closing Balance

$ 12,500.00

1-Mar

Accounts Receivables

$        500.00

4-Mar

Accounts Receivables

$        850.00

12-Mar

Accounts Receivables

$    1,050.00

15-Mar

Cash

$    6,200.00

25-Mar

Accounts Receivables

$        800.00

31-Mar

Cash

$    3,100.00

$ 12,500.00

$ 12,500.00

Total Cash Receipts During March = $ 10648

Journal Entries

Date

Accounts and Explanations

Instrument Number

Debit

Credit

1-Mar

Accounts Receivables

101

$        530.00

Sales

$        500.00

Sales Tax

$          30.00

(sales revenue and sales tax recorded)

4-Mar

Accounts Receivables

102

$        901.00

Sales

$        850.00

Sales Tax

$          51.00

(sales revenue and sales tax recorded)

12-Mar

Accounts Receivables

103

$    1,113.00

Sales

$    1,050.00

Sales Tax

$          63.00

(sales revenue and sales tax recorded)

15-Mar

Cash

$    6,572.00

Sales

$    6,200.00

Sales Tax

$        372.00

(sales revenue and sales tax recorded)

25-Mar

Accounts Receivables

104

$        848.00

Sales

$        800.00

Sales Tax

$          48.00

(sales revenue and sales tax recorded)

28-Mar

Cash

$        260.00

Accounts Receivables

$        260.00

(payment Received from Customer)

31-Mar

Cash

$    3,286.00

Sales

$    3,100.00

Sales Tax

$        186.00

(sales revenue and sales tax recorded)

31-Mar

Cash

$        530.00

Accounts Receivables

$        530.00

(payment Received from Customer)

$ 14,040.00

$ 14,040.00

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