Textbook Problem

SALES JOURNAL, CASH RECEIPTS JOURNAL, AND GENERAL JOURNAL Owens Distributors is a retail business. The following sales, returns, and cash receipts occurred during March 20--. There is an 8% sales tax. Beginning general ledger account balances were Cash, $9,741; and Accounts Receivable, $1,058.25. Beginning customer account balances were Thompson Group, $1,058.25.

Mar. 1    Sold merchandise to Able & Co., $1,800, plus sales tax. Sale No. 33C.

3    Sold merchandise to R. J. Kalas, Inc., $2,240, plus sales tax. Sale No. 33D.

5    Able & Co. returned merchandise from Sale No. 33C for a credit (Credit Memo No. 66), $30, plus sales tax.

7    Made cash sales for the week, $3,160, plus sales tax.

10    Received payment from Able & Co. for Sale No. 33C less Credit Memo No. 66.

11    Sold merchandise to Blevins Bakery, $1,210, plus sales tax. Sale No. 33E.

13    Received payment from R. J. Kalas for Sale No. 33D.

14    Made cash sales for the week, $4,200, plus sales tax.

16    Blevins Bakery returned merchandise from Sale No. 33E for a credit (Credit Memo No. 67), $44, plus sales tax.

18    Sold merchandise to R. J. Kalas, Inc., $2,620, plus sales tax. Sale No. 33F.

20    Received payment from Blevins Bakery for Sale No. 33E less Credit Memo No. 67.

Mar. 21    Made cash sales for the week, $2,400, plus sales tax.

25    Sold merchandise to Blevins Bakery, $1,915, plus sales tax. Sale No. 33G.

27    Sold merchandise to Thompson Group, $2,016, plus sales tax. Sale No. 33H.

28    Made cash sales for the week, $3,500, plus sales tax.

Required

1. 1. Record the transactions in the sales journal, cash receipts journal, and general journal. Total, verify, and rule the columns where appropriate at the end of the month.
2. 2. Post from the journals to the general ledger and accounts receivable ledger accounts. Use account numbers as shown in the chapter.