Brittney Good opened Brittneys Cosmetic Market in London, Ontario on April 1. Brittney offers no sales discount,

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Brittney Good opened Brittney’s Cosmetic Market in London, Ontario on April 1. Brittney offers no sales discount, and 8% PST and 5% GST is charged on all cosmetic sales. The following transactions occurred in April.

2019 Apr. 2 Brittney Good invested $6,000 in the cosmetic market from her personal savings account. 

5 From the cash register tapes, lipstick cash sales were $5,000 plus taxes. Cost of inventory was $3,750. 

5 From the cash register tapes, eyeshadow cash sales were $2,000 plus taxes. Cost of inventory was $1,500. 

8 Sold lipstick on account to Alice Koy Co., $300, sales invoice No. 1001, plus taxes. Cost of inventory was $225. 

9 Sold eyeshadow on account to Marika Sanchez Co., $1,000, sales invoice No. 1002, plus taxes. Cost of inventory was $750. 

12 Issued credit memorandum No. 10 to Alice Koy Co. for $150 for lipstick returned. (Be sure to reduce taxes payable for Brittney’s.) Inventory was damaged, so it was not returned to inventory. 

19 Marika Sanchez Co. paid half the amount owed from sales invoice No. 1002, dated April 9. 

22 Sold lipstick on account to Jeff Tong Co., $500, sales invoice No. 1003, plus taxes. Cost of inventory was $375. 23 Sold eyeshadow on account to Rusty Neal Co., $800, sales invoice No. 1004, plus taxes. Cost of inventory was $600. 

23 Issued credit memorandum No. 11 to Jeff Tong Co. for $200 (plus taxes) for lipstick returned from sales invoice No. 1003, dated April 22. Cost of inventory was $150. 

26 Cash sales taken from the cash register tape showed 

1. Lipstick—$1,000 1 taxes. Cost of inventory was $750. 

2. Eyeshadow—$3,000 1 taxes. Cost of inventory was $2,250. 

29 Sold lipstick on account to Marika Sanchez Co., $400, sales invoice No. 1005, plus taxes. Cost of inventory was $300. 

30 Received payment from Marika Sanchez Co. of sales invoice No. 1005, dated April 29. 


Required 

a. Journalize the above in the sales journal, cash receipts journal, or general journal. 

b. Record in the accounts receivable subsidiary ledger and post to the general ledger when appropriate. 

c. Prepare a schedule of accounts receivable for the end of April 2019

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Related Book For  book-img-for-question

College Accounting A Practical Approach

ISBN: 978-0134166698

13th Canadian edition

Authors: Jeffrey Slater, Debra Good

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