Question

Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each part, 1–5.
1. No sales tax.
(a) Merchandise is sold for $250 cash.
(b) Merchandise is sold on account for $225.
(c) Payment is received for merchandise sold on account.
2. 6% sales tax.
(a) Merchandise is sold for $250 cash plus sales tax.
(b) Merchandise is sold on account for $225 plus sales tax.
(c) Payment is received for merchandise sold on account.
3. Cash and credit sales, with returned merchandise.
(a) Merchandise is sold for $481 cash.
(b) $18 of merchandise sold for $481 is returned for a refund.
(c) Merchandise is sold on account for $388.
(d) $24 of merchandise sold for $388 is returned for a credit.
(e) Payment is received for balance owed on merchandise sold on account.
4. 6% sales tax, with returned merchandise.
(a) Merchandise is sold on account for $480 plus sales tax.
(b) Merchandise sold on account for $30 plus sales tax is returned.
(c) The balance on the account is paid in cash.
(d) Merchandise is sold for $300 cash plus sales tax.
(e) $30 of merchandise sold for $300 cash plus sales tax is returned for a refund.
5. Sales on account, with 2/10, n/30 cash discount terms.
(a) Merchandise is sold on account for $280.
(b) The balance is paid within the discount period.
(c) Merchandise is sold on account for $203.
(d) The balance is paid after the discount period.



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  • CreatedDecember 20, 2011
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