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College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756

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Chapter
Section
BuyFindarrow_forward

College Accounting, Chapters 1-27

23rd Edition
HEINTZ + 1 other
ISBN: 9781337794756
Textbook Problem

SALES TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each part, 1–5.

  1. 1. No sales tax.
    1. (a) Merchandise is sold for $320 cash.
    2. (b) Merchandise is sold on account for $385.
    3. (c) Payment is received for merchandise sold on account.
  2. 2. 5% sales tax.
    1. (a) Merchandise is sold for $320 cash plus sales tax.
    2. (b) Merchandise is sold on account for $385 plus sales tax.
    3. (c) Payment is received for merchandise sold on account.
  3. 3. Cash and credit sales, with returned merchandise.
    1. (a) Merchandise is sold for $340 cash.
    2. (b) $30 of merchandise sold for $340 is returned for refund.
    3. (c) Merchandise is sold on account for $280.
    4. (d) $25 of merchandise sold for $280 is returned for a credit.
    5. (e) Payment is received for balance owed on merchandise sold on account.
  4. 4. 5% sales tax, with returned merchandise.
    1. (a) Merchandise is sold on account for $400 plus sales tax.
    2. (b) Merchandise sold on account for $60 plus sales tax is returned for a credit.
    3. (c) Balance on account is received in cash.
    4. (d) Merchandise is sold for $260 cash plus sales tax.
    5. (e) $40 of merchandise sold for $260 cash plus sales tax is returned for a refund.
  5. 5. Sales on account, with 2/10, n/30 cash discount terms.
    1. (a) Merchandise is sold on account for $450.
    2. (b) The balance is paid within the discount period.
    3. (c) Merchandise is sold on account for $280.
    4. (d) The balance is paid after the discount period.

1.

To determine

Post the transactions of sales and cash receipts, into the accounts of the general ledger, using T- accounts.

Explanation

Posting transactions: The process of transferring the journalized transactions into the accounts of the ledger is known as posting the transactions.

T-account: The condensed form of a ledger is referred to as T-account. The left-hand side of this account is known as debit, and the right hand side is known as credit.

Post the transactions of sales and cash receipts, into the accounts of the general ledger, using T- accounts.

Cash
(a)320.00  
(c)385.00  
    
Total705.000Total
Balance     $705.00 

Table (1)

Accounts Receivable
(b)385...

2.

To determine

Post the transactions of sales and cash receipts, into the accounts of the general ledger, using T- accounts.

3.

To determine

Post the transactions of sales, sales returns and allowances, and cash receipts, into the accounts of the general ledger, using T- accounts.

4.

To determine

Post the transactions of sales, sales returns and allowances, and cash receipts, into the accounts of the general ledger, using T- accounts.

5.

To determine

Post the transactions of sales, sales returns and allowances, and cash receipts, into the accounts of the general ledger, using T- accounts.

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