Question

Bell Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Bell’s sales staff fills out a sales slip for each sale. There is a state retail sales 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. The following represent Bell Florists’ charge sales for March:
Mar. 4 Sold potted plant on account to C. Morales, sales slip no. 242, $ 27, plus sales tax of $ 1.35, total $ 28.35.
6 Sold floral arrangement on account to R. Dixon, sales slip no. 267, $ 54, plus sales tax of $ 2.70, total $ 56.70.
12 Sold corsage on account to B. Cox, sales slip no. 279, $ 16, plus sales tax of $ 0.80, total $ 16.80.
Mar. 16 Sold wreath on account to All-Star Legion, sales slip no. 296, $ 104, plus sales tax of $ 5.20, total $ 109.20.
18 Sold floral arrangements on account to Tucker Funeral Home, sales slip no. 314, $ 260, plus sales tax of $ 13, total $ 273.
21 Tucker Funeral Home complained about a wrinkled ribbon on the floral arrangement. Bell Florists allowed a $ 30 credit plus sales tax of $ 1.50, credit memo no. 27.
23 Sold flower arrangements on account to Price Savings and Loan Association for their fifth anniversary, sales slip no. 337, $ 180, plus sales tax of $ 9, total $ 189.
24 Allowed Price Savings and Loan Association credit, $ 25, plus sales tax of $ 1.25, because of a few withered blossoms in floral arrangements, credit memo no. 28.

Required
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.



$1.99
Sales6
Views164
Comments0
  • CreatedOctober 21, 2014
  • Files Included
Post your question
5000