Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. 1. no sales tax (a) Merchandise is sold for $230 cash. (b) Merchandise is sold on account for $220. (c) Payment is received for merchandise sold on account. 2. 6% sales tax.(a) Merchandise is sold for $230 cash plus sales tax.(b) Merchandise is sold on account for $220 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 $498 cash. (b) $14 of merchandise sold for $498 is returned for a refund. (c) Merchandise is sold on account for $400. (d) $27 of merchandise sold for $400 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account.
Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. 1. no sales tax (a) Merchandise is sold for $230 cash. (b) Merchandise is sold on account for $220. (c) Payment is received for merchandise sold on account. 2. 6% sales tax.(a) Merchandise is sold for $230 cash plus sales tax.(b) Merchandise is sold on account for $220 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 $498 cash. (b) $14 of merchandise sold for $498 is returned for a refund. (c) Merchandise is sold on account for $400. (d) $27 of merchandise sold for $400 is returned for a credit. (e) Payment is received for balance owed on merchandise sold on account.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Sales Transactions and T Accounts
(first screen shot for #1 and 2. the second is for #3)
Using T accounts for Cash,
1. no sales tax
| (a) Merchandise is sold for $230 cash. | |
| (b) Merchandise is sold on account for $220. | |
| (c) Payment is received for merchandise sold on account. |
2. 6% sales tax.(a) Merchandise is sold for $230 cash plus sales tax.(b) Merchandise is sold on account for $220 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 $498 cash. | |
| (b) $14 of merchandise sold for $498 is returned for a refund. | |
| (c) Merchandise is sold on account for $400. | |
| (d) $27 of merchandise sold for $400 is returned for a credit. | |
| (e) Payment is received for balance owed on merchandise sold on account. |
Transcribed Image Text:Cash
Accounts Receivable
Sales
Sales Returns and Allowances
Transcribed Image Text:Cash
Accounts Receivable
Sales
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