Question

Athletic X-Press Sporting Goods began operations March 1, 2016. The firm sells its merchandise for cash; on open account; to customers using bank credit cards, such as MasterCard and VISA; and to customers using American Express. Merchandise sales are subject to an 8 percent sales tax. The bank credit cards charge a 3 percent fee. American Express charges a 4 percent fee. During March, Athletic X-Press Sporting Goods engaged in the following transactions:
DATE TRANSACTIONS
2016
March 1 Sold merchandise on credit to Mark Everest; issued Sales Slip 101 for $700 plus sales tax of $56.
3 Sold merchandise on credit to Emily Ancheta; issued Sales Slip 102 for $300 plus sales tax of $24.
8 Accepted a return of merchandise from Mark Everest; the merchandise was originally sold on Sales Slip 101 of March 1; issued Credit Memorandum 1 for $108, which included sales tax of $8.
10 Received payment from Mark Everest in payment of his balance owed for merchandise sold on March 1, less the return of merchandise on March 8.
12 Sold merchandise on credit to Annie Han; issued Sales Slip 103 for $450 plus sales tax of $36.
15 Recorded cash sales for the period from March 1 to March 15 of $5,000 plus sales tax of $400.
15 Recorded sales for the period from March 1 to March 15 to customers using bank credit cards of $7,000 plus sales tax of $560. (Record the 3% credit card expense at this time.)
25 Sold merchandise on credit to Jason Cataldo; issued Sales Slip 104 for $300 plus sales tax of $24.
26 Sold merchandise to customers using American Express for $3,000 plus sales tax of $240.
28 Received a check from Annie Han of $100 to apply toward her account.
31 Recorded cash sales for the period from March 16 to March 31 of $5,500 plus sales tax of $440.
31 Received payment from American Express for amount billed on March 26, less a 4% fee.
31 Recorded sales for the period from March 16 to March 31 to customers using bank credit cards of $4,000 plus sales tax of $320. (Record the 3% credit card expense at this time.)

INSTRUCTIONS
1. Open the general ledger account and accounts receivable ledger accounts indicated below.
2. Record the transactions in a general journal. Use 1 as the journal page number.
3. Post the entries from the general journal to the appropriate account in the general ledger and in the accounts receivable ledger.
4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable control account with the total of the schedule.
GENERAL LEDGER ACCOUNTS
111 Accounts Receivable
ACCOUNTS RECEIVABLE LEDGER ACCOUNTS
Emily Ancheta Mark Everest
American Express Annie Han
Jason Cataldo



$1.99
Sales2
Views163
Comments0
  • CreatedAugust 08, 2014
  • Files Included
Post your question
5000