The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash...
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Accounting
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 $500 plus sales tax of $30.
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 $1,050 plus sales tax of $63.
15
Recorded cash sales for the period from March 1 to March 15 of $6,200 plus sales tax of $372.
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 $260 to apply toward his account.
31
Recorded cash sales for the period from March 16 to March 31 of $3,100 plus sales tax of $186.
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?
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