Concept explainers
Bell Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Bell’s sales staff fills out a sales slip for each sale. There is a state retail sales tax of 5 percent, which is collected by the retailer and submitted to the state. The balances of the accounts as of March 1 have been recorded in the general ledger in your Working Papers or in CengageNow. The following represent Bell Florists’ charge sales for March:
Mar. 4 Sold potted plant on account to C. Morales, sales slip no. 242, $27, plus sales tax of $1.35, total $28.35.
6 Sold floral arrangement on account to R. Dixon, sales slip no. 267, $54, plus sales tax of $2.70, total $56.70.
12 Sold corsage on account to B. Cox, sales slip no. 279, $16, plus sales tax of $0.80, total $16.80.
16 Sold wreath on account to All-Star Legion, sales slip no. 296, $104, plus sales tax of $5.20, total $109.20.
18 Sold floral arrangements on account to Tucker Funeral Home, sales slip no. 314, $260, plus sales tax of $13, total $273.
21 Tucker Funeral Home complained about a wrinkled ribbon on the floral arrangement. Bell Florists allowed a $30 credit plus sales tax of $1.50, credit memo no. 27.
23 Sold flower arrangements on account to Price Savings and Loan Association for its fifth anniversary, sales slip no. 337, $180, plus sales tax of $9, total $189.
24 Allowed Price Savings and Loan Association credit, $25, plus sales tax of $1.25, because of a few withered blossoms in floral arrangements, credit memo no. 28.
Required
- 1. Record these transactions in the general journal.*
- 2. Post the amounts from the general journal to the general ledger and
accounts receivable ledger: Accounts Receivable 113, Sales Tax Payable 214, Sales 411, Sales Returns and Allowances 412. - 3. Prepare a schedule of accounts receivable and compare its total with the balance of the Accounts Receivable controlling account.
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- College Accounting (Book Only): A Career ApproachAccountingISBN:9781337280570Author:Scott, Cathy J.Publisher:South-Western College Pub