ACC 291 Week 1 Apply: Connect Assignment

Exceptional Electronics began operations September 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 7 percent sales tax. During September, Exceptional Electronics engaged in the following transactions:

DATE		TRANSACTIONS
2019
Sept.	1	Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $1,600 plus sales tax of $112.
	3	Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $800 plus sales tax of $56.
	7	Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
	12	Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
	15	Recorded cash sales for the period from September 1 to September 15 of $10,000 plus sales tax of $700.
	16	Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
	17	Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $1,600 plus sales tax of $112.
	18	Received $620 from Candy Cho on account.
	20	Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
	25	Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $300 plus sales tax of $21.
	27	Received payment in full from Bridgette Huffman for the sale of September 7.
	29	Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
	30	Recorded cash sales for the period from September 16 to September 30 of $10,300 plus sales tax of $721.

Required:

Record the transactions in a general journal.

Analyze:

What portion of the sales during September were for entertainment items? Assume the cash sales transactions are for non-entertainment items. (Hint: Do not forget to reduce sales by any sales returns or allowances.)

DATE		TRANSACTIONS
2019
Sept.	1	Sold a high-definition television set on credit to Candy Cho; issued Sales Slip 101 for $3,200 plus sales tax of $224.
	3	Sold stereo equipment on credit to Jim Peterson; issued Sales Slip 102 for $1,000 plus sales tax of $70.
	7	Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip 103 for $400 plus sales tax of $28.
	12	Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum 101 for $200 plus sales tax of $14. The stereo equipment was sold on September 3.
	15	Recorded cash sales for the period from September 1 to September 15 of $9,000 plus sales tax of $630.
	16	Sold a gas dryer on credit to Kathy Sundstrand; issued Sales Slip 104 for $700 plus sales tax of $49.
	17	Sold a home entertainment system on credit to Mark Navalta; issued Sales Slip 105 for $2,200 plus sales tax of $154.
	18	Received $780 from Candy Cho on account.
	20	Received payment in full from Jim Peterson for the sale of September 3, less the return of September 12.
	25	Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September 17, Sales Slip 105; issued Credit Memorandum 102 for $100 plus sales tax of $7
	27	Received payment in full from Bridgette Huffman for the sale of September 7
	29	Sold a dishwasher on credit to Mark Navalta; issued Sales Slip 106 for $500 plus sales tax of $35.
	30	Recorded cash sales for the period from September 16 to September 30 of $11,900 plus sales tax of $833.

GENERAL LEDGER ACCOUNTS


101	Cash	401	Sales
111	Accounts Receivable	421	Sales Returns and Allowances
221	Sales Tax Payable

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS

Candy Cho		Jim Peterson
Bridgette Huffman		Kathy Sundstrand
Mark Navalta

Required:

Post the entries from the general journal into the appropriate accounts in the general ledger and in the accounts receivable ledger.

Prepare a schedule of accounts receivable.

Analyze:

What is the amount of sales tax owed at September 30, 2019?

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:

DATE		TRANSACTIONS
2019
March	1	Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $550 plus sales tax of $33.
	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 $1,150 plus sales tax of $69.
	15	Recorded cash sales for the period from March 1 to March 15 of $6,100 plus sales tax of $366.
	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 $270 to apply toward his account.
	31	Recorded cash sales for the period from March 16 to March 31 of $3,000 plus sales tax of $180.
	31	Received payment in full from Dave Allen for the sale of March 1.

Required:

Record the transactions in a general journal.

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

GENERAL LEDGER ACCOUNTS
101	Cash	221	Sales Tax Payable
111	Accounts Receivable	401	Sales

Analyze:

What were the total cash receipts during March?