Question: Exercise 7 . 4 ( Static ) Recording sales made for cash and on account, with 9 percent sales tax, and sales returns. LO 7

Exercise 7.4(Static) Recording sales made for cash and on account, with 9 percent sales tax, and sales returns. LO 7-1
Fashion Park must charge 9 percent sales tax on all sales.
DATE TRANSACTIONS
April 2,20X1 Sold merchandise for cash, $4,000 plus sales tax.
April 3,20X1 The customer purchasing merchandise for cash on April 2 returned $1,000 of the merchandise; provided a cash refund to the customer.
April 4,20X1 Sold merchandise on credit to Lynn Bui; issued Sales Slip 908 for $800 plus tax, terms n/30.
April 6,20X1 Accepted return of damaged merchandise from Lynn Bui; issued Credit Memorandum 302 for $200 plus tax. The original sale was made on Sales Slip 908 of April 4.
April 30,20X1 Received payment on account from Lynn Bui in payment of her purchase of April 4, less the return on April 6.
Required:
Record the above transactions of Fashion Park in a general journal.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!