Lauras Cosmetic Market of Brandon began operating in April. There is 8% PST and 5% GST on
Question:
Laura’s Cosmetic Market of Brandon began operating in April. There is 8% PST and 5% GST on all cosmetic sales. Laura offers no discounts. The following transactions occurred in April.
2019 Apr. 2 Laura Murray invested $10,000 in the cosmetic market from her personal account.
3 From the cash register tapes, lipstick cash sales were $5,000 plus taxes. Cost of inventory was $3,750.
4 From the cash register tapes, eyeshadow cash sales were $3,000 plus taxes. Cost of inventory was $2,250.
5 Sold lipstick on account to Corsen Co., $400, sales invoice No. 1001, plus taxes. Cost of inventory was $300.
9 Sold eyeshadow on account to Kaelen Parker Co., $900, sales invoice No. 1002, plus taxes. Cost of inventory was $675.
16 Issued credit memorandum No. 30 to Corsen Co. for lipstick returned, $200. (Be sure to reduce taxes payable.) Merchandise was not returned to inventory.
18 Kaelen Parker Co. paid half the amount owed from sales invoice No. 1002, dated April 9.
19 Sold lipstick on account to Jaiden Co., $600 sales invoice No. 1003, plus taxes. Cost of inventory was $450.
22 Sold eyeshadow on account to Rusty Neal Co., $1,000, sales invoice No. 1004, plus taxes. Cost of inventory was $750.
23 Issued credit memorandum No. 31 to Jaiden Co. for $300 (plus taxes) for lipstick returned from sales invoice No. 1003, dated April 19. Cost of inventory returned was $225.
26 Sold lipstick on account to Kaelen Parker Co., $900, sales invoice No. 1005, plus taxes. Cost of inventory was $675.
29 Cash sales taken from the cash register tape showed 1. Lipstick—$4,000 1 taxes. Cost of inventory was $3,000. 2. Eyeshadow—$2,000 1 taxes. Cost of inventory was $1,500.
30 Received payment from Kaelen Parker Co. of sales invoice No. 1005, dated April 26.
Required
a. Journalize, record, and post as appropriate.
b. Prepare a schedule of accounts receivable for the end of April 2019.
Step by Step Answer:
College Accounting A Practical Approach
ISBN: 978-0134166698
13th Canadian edition
Authors: Jeffrey Slater, Debra Good