Best Appliances is a retail store that sells household appliances. Merchandise sales are subject to an 8 percent sales tax. The firm's credit sales for July are listed below, along with the general ledger accounts used to record these sales. The balance shown for Accounts Receivable is for the beginning of the month.

DATE....................... TRANSACTIONS

July 1 Sold a dishwasher to Perry Martin; issued Sales Slip 501 for $1,150 plus sales tax of $92.

6 Sold a washer to Cindy Han; issued Sales Slip 502 for $2,425 plus sales tax of $194.

11 Sold a high-definition television set to Richard Slocomb; issued Sales Slip 503 for $2,600 plus sales tax of $208.

17 Sold an electric dryer to Mary Schneider; issued Sales Slip 504 for $1,275 plus sales tax of $102.

23 Sold a trash compactor to Veronica Velazquez; issued Sales Slip 505 for $900 plus sales tax of $72.

27 Sold a color television set to Jeff Budd; issued Sales Slip 506 for $1,725 plus sales tax of $138.

29 Sold an electric range to Michelle Ly; issued Sales Slip 507 for $1,450 plus sales tax of $116.

31 Sold a double oven to Phil Long; issued Sales Slip 508 for $625 plus sales tax of $50.

INSTRUCTIONS

1. Open the general ledger accounts and enter the balance of Accounts Receivable for July 1, 2016.

2. Record the transactions in a sales journal like the one shown in Figure 7.4. Use 8 as the journal page number.

3. Total, prove, and rule the sales journal as of July 31.

4. Post the column totals from the sales journal to the proper general ledger accounts.

GENERAL LEDGER ACCOUNTS

111......... Accounts Receivable, $34,500 Dr.

231............................. Sales Tax Payable

401............................................ Sales

Analyze: What percentage of credit sales were for entertainment items?