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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 JOURNAL Futi Ishanyan owns a retail business and made the following sales during the month of August 20--. There is a 6% sales tax on all sales.

Aug. 1    Sale No. 213 to Jeter Manufacturing Co., $1,300, plus sales tax.

3    Sale No. 214 to Hassan Co., $2,600, plus sales tax.

7    Sale No. 215 to Habrock, Inc., $1,700, plus sales tax. (Open a new account for this customer. Address is 125 Fishers Dr., Noblesville, IN 47870–8867.)

11    Sale No. 216 to Seth Mowbray, $1,400, plus sales tax.

18    Sale No. 217 to Hassan Co., $3,960, plus sales tax.

22    Sale No. 218 to Jeter Manufacturing Co., $2,800, plus sales tax.

30    Sale No. 219 to Seth Mowbray, $1,900, plus sales tax.

Required

  1. 1. Record the transactions in the sales journal starting with page 8. Total and verify the column totals and rule the columns.
  2. 2. Post from the sales journal to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.

1.

To determine

Prepare the given transactions in the sales journal and verify the total column and rule the column.

Explanation

Sales Journal

Sales journal is one form of special journal book, which records all the sales transactions that are sold to customers on credit. In a single column sales journal, debit aspect of accounts receivable and credit aspect of inventory are recorded, and then posted to individual subsidiary customer account.

Prepare the given transaction in a sales journal:

Table (1)

Working note 1:

Calculate the amount of accounts receivable (debit) on dated 1st August:

Accounts receivable (debit) on dated 1stAugust}=(Sales + 6% on sales tax)=[$1,300+(6%×$1,300)]=[$1,300+$78]=$1,378

Working note 2:

Calculate the amount of accounts receivable (debit) on dated 3rd  August:

Accounts receivable (debit) on dated 3rdAugust}=(Sales + 6% on sales tax)=[$2,600+(6%×$2,600)]=[$2,600+$156]=$2,756

Working note 3:

Calculate the amount of accounts receivable (debit) on dated 7th August:

Accounts receivable (debit) on dated 7thAugust}=(Sales + 6% on sales tax)=[$1,700+(6%×$1,700)]=[$1,700+$102]=$1,802

Working note 4:

Calculate the amount of accounts receivable (debit) on dated 11th August:

Accounts receivable (debit) on dated 11thAugust}=(Sales + 6% on sales tax)=[$1,400<

2.

To determine

Post the sales journal into the general ledger and the accounts receivable ledger, and use the customer accounts in accounts receivable ledger.

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