The Victorian Elegance China Shop sells china, stemware, and other gift items. Sales to retail customers are
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DATE TRANSACTIONS
2016
June 1 Sold crystal goods to Wine Country Kitchens, a wholesale customer. The list price is $6,000, with a 30 percent trade discount. This sale is not subject to sales tax. Issued Invoice 6920 with terms of n/15.
15 Recorded cash sales for the period from June 1 to June 15 of $10,200 plus sales tax of $816.
15 Recorded sales for the period from June 1 to June 15 to customers using bank credit cards of $14,200 plus sales tax of $1,136. (Record the 3 percent credit card expense at this time.)
16 Received a check from Wine Country Kitchens in payment of Invoice 6920 dated June 1.
16 Sold merchandise to customers using American Express for $9,000 plus sales tax of $720.
17 Sold a case of brass serving trays to Victorian Decadence, a wholesale customer. The list price is $18,000, with a 40 percent trade discount. This sale is not subject to sales tax. Issued Invoice 6921 with terms of n/15.
19 Received payment from American Express for amount billed on June 16, less a 4 percent credit card expense.
29 Received a check from Victorian Decadence in payment of Invoice 6921 dated June 17.
30 Recorded cash sales for the period from June 16 to June 30 of $9,550 plus sales tax of $764.
30 Recorded sales for the period from June 16 to June 30 to customers using bank credit cards of $11,700 plus sales tax of $936. (Record the 3 percent credit card expense at this time.)
30 Sold merchandise to customers using American Express for $8,200 plus sales tax of $656.
INSTRUCTIONS
1. Open the general ledger accounts indicated below and enter the balances as of June 1, 2016.
2. Record the transactions in a general journal. Use 15 as the journal page number.
3. Post the entries from the general journal to the appropriate accounts in the general ledger.
GENERAL LEDGER ACCOUNTS
101 Cash, $30,155 Dr. 401 Sales
121 Accounts Receivable 521 Credit Card Expense
222 Sales Tax Payable
Analyze: What was the total credit card expense incurred in June?
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
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Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
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