Question

Gary Wilcox opened Gary’s Cosmetic Market on October 1. A 4% sales tax is calculated and added to all cosmetic sales. Gary offers no sales discounts. The following transactions occurred in April:
201X
Oct. 1 Gary Wilcox invested $9,500 in the Cosmetic Market from his personal savings account.
5 From the cash register tapes, lipstick cash sales were $4,900, plus sales tax.
5 From the cash register tapes, eye shadow cash sales were $2,500, plus sales tax.
8 Sold lipstick on account to Fione Tay Co., $500, sales ticket no. 1, plus sales tax.
9 Sold eye shadow on account to Marika Sanford Co., $600, sales ticket no. 2, plus sales tax.
15 Issued credit memorandum no. 1 to Marika Sanford Co. for $50 for lipstick returned. (Be sure to reduce Sales Tax Payable for Gary’s.)
19 Marika Sanford Co. paid half the amount owed from sales ticket no. 2, dated October 9.
21 Sold lipstick on account to Mary Ruvolo Co., $500, sales ticket no. 3, plus sales tax.
24 Sold eye shadow on account to Peter Melnyk Co., $800, sales ticket no. 4, plus sales tax.
25 Issued credit memorandum no. 2 to Mary Ruvolo Co. for $300 for lipstick returned from sales ticket no. 3, dated October 21.
29 Cash sales taken from the cash register tape showed the following:
1. Lipstick: $700 + $28 sales tax collected.
2. Eye shadow: $3,500 + $140 sales tax collected.
29 Sold lipstick on account to Marika Sanford Co., $500, sales ticket no. 5, plus sales tax.
30 Received payment from Marika Sanford Co. of sales ticket no. 5, dated October 29.

Required
1. Journalize, record, and post as appropriate.
2. Prepare a schedule of accounts receivable for the end of October.



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  • CreatedApril 24, 2014
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