SALES TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each part, 1-5. 1. No sales tax. (a) Merchandise is sold for $320 cash. (b) Merchandise is sold on account for $385. (c) Payment is received for merchandise sold on account. 2.5% sales tax. (a) Merchandise is sold for $320 cash plus sales tax. (b) Merchandise is sold on account for $385 plus sales tax. (c) Payment is received for merchandise sold on account. 3. Cash and credit sales, with returned merchandise. (a) Merchandise is sold for $340 cash. (b) $30 of merchandise sold for $340 is returned for refund. (c) Merchandise is sold on account for $280. (d) $25 of merchandise sold for $280 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account. 4.5 % sales tax, with returned merchandise. (a) Merchandise is sold on account for $400 plus sales tax. (b) Merchandise sold on account for $60 plus sales tax is returned for credit. (c) Balance on account is received in cash. (d) Merchandise is sold for $260 cash plus sales tax . (e) $40 of merchandise sold for $260 cash plus sales tax is returned for a refund. 5. Sales on account, with 2/10 , n/30 cash discount terms. (a) Merchandise is sold on account for $450. (b) The balance is paid within the discount period. (c) Merchandise is sold on account for $280. (d) The balance is paid after the discount period.

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FINANCIAL ACCOUNTING

10th Edition

ISBN: 9781259964947

Author: Libby

Publisher: MCG

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Question

SALES TRANSACTIONS AND T ACCOUNTS Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each part, 1-5.

1. No sales tax.

(a) Merchandise is sold for $320 cash.

(b) Merchandise is sold on account for $385.

2.5% sales tax.

(a) Merchandise is sold for $320 cash plus sales tax.

(b) Merchandise is sold on account for $385 plus sales tax.

3. Cash and credit sales, with returned merchandise.

(a) Merchandise is sold for $340 cash.

(b) $30 of merchandise sold for $340 is returned for refund.

(d) $25 of merchandise sold for $280 is returned for a credit.

(e) Payment is received for balance owed on merchandise sold on account.

4.5 % sales tax, with returned merchandise.

(a) Merchandise is sold on account for $400 plus sales tax.

(b) Merchandise sold on account for $60 plus sales tax is returned for credit.

(d) Merchandise is sold for $260 cash plus sales tax .

(e) $40 of merchandise sold for $260 cash plus sales tax is returned for a refund.

5. Sales on account, with 2/10 , n/30 cash discount terms.

(a) Merchandise is sold on account for $450.

(b) The balance is paid within the discount period.

(d) The balance is paid after the discount period.

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