The Appliance Store began operations March 1 2019 The firm s

The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:

Required:

Record the transactions in a general journal.

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

Analyze:
What were the total cash receipts during March?

DATE	TRANSACTIONS
2019
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 $850 plus sales tax of $51.
	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 $6,200 plus sales tax of $372.
	25	Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $800 plus sales tax of $48.
	28	Received a check from Castor Phan of $260 to apply toward his account.
	31	Recorded cash sales for the period from March 16 to March 31 of $3,100 plus sales tax of $186.
	31	Received payment in full from Dave Allen for the sale of March 1.

Solution

Journal Entries

Date

Accounts and Explanations

Instrument Number

Debit

Credit

1-Mar

Accounts Receivables

101

$        530.00

Sales

$        500.00

Sales Tax

$          30.00

(sales revenue and sales tax recorded)

4-Mar

Accounts Receivables

102

$        901.00

Sales

$        850.00

Sales Tax

$          51.00

(sales revenue and sales tax recorded)

12-Mar

Accounts Receivables

103

$    1,113.00

Sales

$    1,050.00

Sales Tax

$          63.00

(sales revenue and sales tax recorded)

15-Mar

Cash

$    6,572.00

Sales

$    6,200.00

Sales Tax

$        372.00

(sales revenue and sales tax recorded)

25-Mar

Accounts Receivables

104

$        848.00

Sales

$        800.00

Sales Tax

$          48.00

(sales revenue and sales tax recorded)

28-Mar

Cash

$        260.00

Accounts Receivables

$        260.00

(payment Received from Customer)

31-Mar

Cash

$    3,286.00

Sales

$    3,100.00

Sales Tax

$        186.00

(sales revenue and sales tax recorded)

31-Mar

Cash

$        530.00

Accounts Receivables

$        530.00

(payment Received from Customer)

$ 14,040.00

$ 14,040.00

Cash (101)

15-Mar

Sales

$    6,200.00

31-Mar

Closing Balance

$ 10,648.00

15-Mar

Sales Tax

$        372.00

28-Mar

Accounts Receivables

$        260.00

31-Mar

Sales

$    3,100.00

31-Mar

Sales Tax

$        186.00

31-Mar

Accounts Receivables

$        530.00

$ 10,648.00

$ 10,648.00

Sales Tax Payable (221)

31-Mar

Closing Balance

$        750.00

1-Mar

Accounts Receivables

$          30.00

4-Mar

Accounts Receivables

$          51.00

12-Mar

Accounts Receivables

$          63.00

15-Mar

Cash

$        372.00

25-Mar

Accounts Receivables

$          48.00

31-Mar

Cash

$        186.00

$        750.00

$        750.00

Accounts Receivable( 111)

1-Mar

Accounts Receivables

$        530.00

28-Mar

Cash

$        260.00

4-Mar

Accounts Receivables

$        901.00

31-Mar

Cash

$        530.00

12-Mar

Accounts Receivables

$    1,113.00

31-Mar

Closing Balance

$    2,602.00

25-Mar

Accounts Receivables

$        848.00

$    3,392.00

$    3,392.00

Sales(401)

31-Mar

Closing Balance

$ 12,500.00

1-Mar

Accounts Receivables

$        500.00

4-Mar

Accounts Receivables

$        850.00

12-Mar

Accounts Receivables

$    1,050.00

15-Mar

Cash

$    6,200.00

25-Mar

Accounts Receivables

$        800.00

31-Mar

Cash

$    3,100.00

$ 12,500.00

$ 12,500.00

Total Cash Receipts During March = $ 10648

Journal Entries
Date	Accounts and Explanations	Instrument Number	Debit	Credit
1-Mar	Accounts Receivables	101	$        530.00
	Sales			$        500.00
	Sales Tax			$          30.00
	(sales revenue and sales tax recorded)
4-Mar	Accounts Receivables	102	$        901.00
	Sales			$        850.00
	Sales Tax			$          51.00
	(sales revenue and sales tax recorded)
12-Mar	Accounts Receivables	103	$    1,113.00
	Sales			$    1,050.00
	Sales Tax			$          63.00
	(sales revenue and sales tax recorded)
15-Mar	Cash		$    6,572.00
	Sales			$    6,200.00
	Sales Tax			$        372.00
	(sales revenue and sales tax recorded)
25-Mar	Accounts Receivables	104	$        848.00
	Sales			$        800.00
	Sales Tax			$          48.00
	(sales revenue and sales tax recorded)
28-Mar	Cash		$        260.00
	Accounts Receivables			$        260.00
	(payment Received from Customer)
31-Mar	Cash		$    3,286.00
	Sales			$    3,100.00
	Sales Tax			$        186.00
	(sales revenue and sales tax recorded)
31-Mar	Cash		$        530.00
	Accounts Receivables			$        530.00
	(payment Received from Customer)
			$ 14,040.00	$ 14,040.00