Problem Set A PROBLEM 9-1A Bell Florists sells flowers on a retail basis. Most o

Question

Problem Set A PROBLEM 9-1A Bell Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Bell's sales staff fills out a sales slip for each sale. There is a state retail sales tax of 5 percent, which is collected by the retailer and submitted to the state. The balances of the accounts as of March I have been recorded in the general ledger in your Working Papers or in CengageNow. The following represent Bell Florists' charge sales for March: Mar. Sold potted plant on account to C. Morales, sales slip no. 242, $27, plus sales tax of $1.35, total $28.35 Sold floral arrangement on account to R. Dixon, sales slip no. 267, S54, plus sales tax of $2.70, total $56.70. Sold corsage on account to B. Cox, sales slip no. 279, $16, plus sales tax of S0.80, total $16.80. Sold wreath on account to All-Star Legion, sales slip no. 296, S104, plus sales tax of $5.20, total $109.20. Sold floral arrangements on account to Tucker Funeral Home, sales slip no. 314, $260, plus sales tax of $13, total $273. Tucker Funeral Home complained about a wrinkled ribbon on the floral arrangement. Bell Florists allowed a $30 credit plus sales tax of sl.50, credit 4 6 12 16 18 21 memo no. 27. Sold flower arrangements on account to Price Savings and Loan Association for its fifth anniversary, sales sl Allowed Price Savings and Loan Association credit, $25, plus sales tax of $1.25, because of a few withered blossoms in floral arrangements, credit memo no. 28. ip no. 337,$180, plus sales tax of s9, total $189. 24 Required 1. Record these transactions in the general journal. 2. Post the amounts from the general journal to the general ledger and accounts receivable ledger: Accounts Receivable 113, Sales Tax Payable 214, Sales 411, Sales Returns and Allowances 412. 3. Prepare a schedule of accounts receivable and compare its total with the balance of the Accounts Receivable controlling account. If using Working Papers, use pages 57 and 58 in the journal.

Explanation / Answer

The controlling account is the detailed account whereas the schedule is the summary of ledger accounts.

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1. Journal Entries: Date Accounts Titles Debit $ Credit $ 4-Mar AR 28.35 Sales 27 Sales tax payable 1.35 6-Mar AR 56.7 Sales 54 Sales tax payable 2.7 12-Mar AR 16.8 Sales 16 Sales tax payable 0.8 16-Mar AR 109.2 Sales 104 Sales tax payable 5.2 18-Mar AR 273 Sales 260 Sales tax payable 13 21-Mar Sales return 30 Sales tax payable 1.5 AR 31.5 23-Mar AR 189 Sales 180 Sales tax payable 9 24-Mar Sales return 25 Sales tax payable 1.25 AR 26.25

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