Chapter 7 Homework Saved 2 Record the following transactions of Fashion Designs
ID: 2342119 • Letter: C
Question
Chapter 7 Homework Saved 2 Record the following transactions of Fashion Designs in a general journal. Assume 8 percent for sales tax: DATE TRANSACTIONS 2016 April 2 Sold merchandise for cash, $1,300 plus sales tax. points 3 The customer purchasing merchandise for cash on April 2 returned $100 of the 4 Sold merchandise on credit to Tisha Lee; issued Sales Slip 908 for $850 plus 6 Accepted return of damaged merchandise from Tisha Lee; issued Credit merchandise; provided a cash refund to the customer tax, terms n/30. Memorandum 302 for $50 plus tax. The original sale was made on Sales Slip eBook Hint Print 908 of April 4 30Received payment on account from Tisha Lee in payment of her purchase of April 4, less the return on April 6 View transaction listExplanation / Answer
Solution:
Journal Entries - Fashion Designs Date Particulars Debit Credit 2-Apr Cash Dr $1,404.00 To Sales Revenue $1,300.00 To Sales Tax Payable $104.00 (To record merchandise sold for cash) 3-Apr Sales return and allowances Dr $100.00 Sales Tax Payable Dr $8.00 To Cash $108.00 (Being merchandise returned by customer) 4-Apr Accounts receivables Dr $918.00 To Sales Revenue $850.00 To Sales Tax Payable $68.00 (To record merchandise sold on account) 6-Apr Sales return and allowances Dr $50.00 Sales Tax Payable Dr $4.00 To Accounts receivables $54.00 (Being merchandise returned by customer) 30-Apr Cash Dr $864.00 To Accounts receivables $864.00 (To record cash received from customer)