Question: Abbott Florists sells flowers on a retail basis Most of

Abbott Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Abbott’s sales staff fills out a sales slip for each sale. There is a state retail tax of 5 percent, which is collected by the retailer and submitted to the state. The balances of the accounts as of March 1 have been recorded in the general ledger in your Working Papers or in CengageNow. Abbott Florists’ charge sales for March are as follows:
Mar. 4 Sold floral arrangement on account to R. Duarte, sales slip no. 236, $ 45, plus sales tax of $ 2.25, total $ 47.25.
7 Sold potted plant on account to C. Meadows, sales slip no. 272, $ 61, plus sales tax of $ 3.05, total $ 64.05.
12 Sold wreath on account to Anthony Realty, sales slip no. 294, $ 63, plus sales tax of $ 3.15, total $ 66.15.
17 Sold floral arrangements on account to Travis Dress Shop, sales slip no. 299, $ 170, plus sales tax of $ 8.50, total $ 178.50.
20 Travis Dress Shop returned a flower spray, complaining that there were dead blooms. Abbott Florists allowed a credit of $ 36, plus sales tax of $ 1.80, credit memo no. 27.
21 Sold flower arrangements on account to Porter Computers for its anniversary, sales slip no. 310, $ 236, plus sales tax of $ 11.80, total $ 247.80.
22 Allowed Porter Computers credit, $ 25, plus sales tax of $ 1.25, because of withered blossoms in floral arrangements, credit memo no. 28.
27 Sold corsage on account to B. Crosby, sales slip no. 332, $ 30, plus sales tax of $ 1.50, total $ 31.50.

1. Record these transactions in the general journal (pages 57 and 58).
2. Post the amounts from the general journal to the general ledger and accounts receivable ledger: Accounts Receivable 113, Sales Tax Payable 214, Sales 411, Sales Returns and Allowances 412.
3. Prepare a schedule of accounts receivable and compare its total with the balance of the Accounts Receivable controlling account.

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  • CreatedOctober 21, 2014
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