William Fuerst Company completes the following transactions during July of the current year. A tax rate of 8% applies to all sales.

July 

3 Sold \($6,000\) of merchandise on credit to Susan Scholz, Invoice No. 1060.

7 Sold \($4,500\) of merchandise on credit to Mike Ettredge, Invoice No. 1061.

9 Sold \($7,700\) of merchandise on credit to Mark Hirschey, Invoice No. 1062.

13. Sold \($1,600\) of merchandise on credit to Susan Scholz, Invoice No. 1063.

24 Sold \($5,300\) of merchandise on credit to Gilbert Karuga, Invoice No. 1064.

29 Sold \($7,100\) of merchandise on credit to Mark Hirschey, Invoice No. 1065.

Required

Divide your team into two groups. Have one group prepare the general journal entries for each sale. Have the other group prepare a sales journal like that in Exhibit 11.6. Compare and contrast the advantages and disadvantages of each approach.

Transcribed Image Text:

Sales Journal Page 3 Account Invoice Accounts Date Debited Number PR Receivable Dr. Sales Tax Payable Cr. Sales Cr. Nov. 3 Bradford Inc. 145 2,544 144 5 Smith Inc. 146 1,113 8. 2,400 63 1,050 B Cluff Inc. 147 265 15 250 11 Dobson Inc. 148 583 33 550 12 Taylor Inc. 149 1,431 81 1,350 15 Burns Inc. 150 636 36 600 17 Smith Inc. 151 1,484 84 1,400 23 Dobson Inc. 152 1,272 72 1,200 27 Taylor Inc. 153 318 18 300 Exhibit 11.6 Sales Journal Example