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Problem $7\mathrm{.}2$A $($Algo$)$ Recording sales, sales returns, and cash receipts for a retail store. LO $7-1$

Exceptional Electronics began operations September $1,20$X$1.$ The firm sells its merchandise for cash and on open account. Sales are subject to a $7$ percent sales tax. The terms for all sales on credit are net $30.$ During September, Exceptional Electronics engaged in the following transactions:

DATE

September $1,201$

September $3,201$

September $7,20$X$1$

September $12,20$X$1$

September $15,20$X$1$

September $16,20$X$1$

September $17,20$X$1$

September $18,20$X$1$

September $20,20$X$1$

September $25,20$X$1$

September $27,20$X$1$

September $29,20$X$1$

September $30,20$X$1$

TRANSACTIONS

Sold a high$-$definition television set on credit to Candy Cho; issued Sales Slip $101$ for $$3,200$ plus sales tax of $$224.$

Sold stereo equipment on credit to Jim Peterson; issued Sales Slip $102$ for $$1,000$ plus sales tax of $$70.$

Sold a microwave oven on credit to Bridgette Huffman; issued Sales Slip $103$ for $$400$ plus sales tax of $$28.$

Accepted return of defective stereo equipment from Jim Peterson; issued Credit Memorandum $101$ for $$200$ plus sales tax of $$14.$ The stereo equipment was sold on September $3$ ;

Recorded cash sales for the period from September $1$ to September $15$ of $$9,000$ plus sales tax of $$630.$

Sold a gas dryer on credit to Kathy Sundstrand; issued Sales S$1$ip $104$ for $$700$ plus sales tax of $$49.$

Sold a home entertainment system on credit to Mark Navalta; issued Sales S$1$ip $105$ for $$2,200$ plus sales tax of $$154.$

Received $$780$ from Candy Cho on account.

Received payment in full from Jim Peterson for the sale of September $3,$ less the return of September $12.$

Gave Mark Navalta an allowance because of scratches on his home entertainment system sold on September $17,$ Sales Slip $105$; issued Credit Memorandum $102$ for $$100$ plus sales tax of $$7.$

Received payment in full from Bridgette Huffman for the sale of September $7.$

Sold a dishwasher on credit to Mark Navalta; issued Sales Slip $106$ for $$500$ plus sales tax of $$35.$

Recorded cash sales for the period from September $16$ to September $30$ of $$11,900$ plus sales tax of $$833.$

Required:

Record the transactions in a general journal.

Analyze:

What portion of the net sales during September were for entertainment items? None of the cash sales included entertainment items.

Answer & Explanation Solved by verified expert

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