Problem $7\mathrm{.}1$A $($Algo$)$ Recording sales and cash receipts for a retail store. LO $7-1,7-4$

The Appliance Store began operations March $1,20$X$1.$ The firm sells its merchandise for cash and on open account. Sales are subject to a $6$ percent sales tax. The terms for all sales on credit are net $30.$ During March, The Appliance Store engaged in the following transactions:

DATE TRANSACTIONS

$20$X$1$

March $1$ Sold merchandise on credit to Dave Allen; issued Sales Slip $101$ for $$500$ plus sales tax of $$30.$

$4$ Sold merchandise on credit to Castor Phan; issued Sales Slip $102$ for $$950$ plus sales tax of $$57.$

$12$ Sold merchandise on credit to Chris Hughes; issued Sales Slip $103$ for $$1,050$ plus sales tax of $$63.$

$15$ Recorded cash sales for the period from March $1$ to March $15$ of $$6,500$ plus sales tax of $$390.$

$25$ Sold merchandise on credit to Brian Cooley; issued Sales Slip $104$ for $$900$ plus sales tax of $$54.$

$28$ Received a check from Castor Phan of $$230$ to apply toward his account.

$31$ Recorded cash sales for the period from March $16$ to March $31$ of $$3,400$ plus sales tax of $$204.$

$31$ Received payment in full from Dave Allen for the sale of March $1.$

Required:

Record the transactions in a general journal.

Post the entries from the general journal to the appropriate general ledger accounts.

GENERAL LEDGER ACCOUNTS

$101$ Cash $221$ Sales Tax Payable

$111$ Accounts Receivable $401$ Sales

Analyze:

What were the total cash receipts during March?