Question

1. Use the following transactions to answer the questions. Use a 7% sales tax rate. Total and rule the sales journal.

   Aug.   1	Sold merchandise on account to Beth Deleo, $1,500, plus sales tax.
   5	Sold merchandise on account to Bill Serrato, $1,850, plus sales tax.
   11	Issued credit memorandum to Beth Deleo for $428, including sales tax of $28.
   22	Sold merchandise on account to Donna Whitten, $680, plus sales tax.
   25	Sold merchandise on account to Rob Thompson, $750, plus sales tax.

   Prepare the sales journal using the above transactions, as appropriate. If required, round answers to the nearest cent.

   SALES JOURNAL						Page 1
   Date	Sale No.	To Whom Sold	Post. Ref.	Accounts Receivable Debit	Sales Credit	Sales Tax Payable Credit
   Aug. 1		Beth Deleo
   5		Bill Serrato
   22		Donna Whitten
   25		Rob Thompson

   Prepare the general journal using the above transactions, as appropriate. If an amount box does not require, leave it blank.

   Page: 1

   	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
   1	Aug. 11	Accounts Receivable/Beth Deleo Cash Sales Returns and Allowances Supplies Wages Payable					1
   2		Accounts Receivable/Beth Deleo Cash Sales Tax Expense Sales Tax Payable Income Tax Payable					2
   3		Accounts Receivable/Beth Deleo Cash Sales Returns and Allowances Sales Tax Payable Income Tax Payable

Answer 1

Solution Preparation of Sales Journal.

Sales Journal						Page 1
Date	Sale No	To Whom Sold	Post Ref.	Accounts Receivable	Sales	Sales Tax Payable
				Debit	Credit	Credit
Aug.1		Beth Deleo		1605.00	1500.00	105.00
Aug.5		Bill Serrato		1979.50	1850.00	129.50
Aug.22		Donna Whitten		727.60	680.00	47.60
Aug.25		Rob Thompson		802.50	750.00	52.50
Total				$                   5,114.60	$       4,780.00	$                 334.60

2. Preparation of General Journal

Date	Description	Post Ref.	Debit	Credit
Aug.11	Sales Return & Allowance	Page 1	$    400.00
	Sales Tax Payable	Page 1	$      28.00
	Account Receivable- Beth Deleo	Page 1		$    428.00
	To record Sales Return