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Recording and Posting Sales and Cash Receipts Buzz Newsstand had the following
Chapter 14, Problem 14-9(choose chapter or problem)
Recording and Posting Sales and Cash Receipts
Buzz Newsstand had the following transactions for the month of January.
| General Ledger | |
| 101 Cash in Bank | 401 Sales |
| 115 Accounts Receivable | 405 Sales Discounts |
| 135 Supplies | 410 Sales Returns and Allowances |
| 215 Sales Tax Payable |
| Accounts Receivable Subsidiary Ledger | |
| ADK Adkins, Lee | NAD Nadal, Saba |
| JAV Java Shops Inc. | ROL Rolling Hills Pharmacies |
Instructions
1. Record the transactions on page 9 of the general journal.
2. Post each transaction to the appropriate general ledger and accounts receivable subsidiary ledger accounts. A partial general ledger and accounts receivable subsidiary ledger are included in the working papers. The current account balances are recorded in the accounts.
| Date | Transactions |
| Jan. 1 | Lee Adkins returned $200 in damaged merchandise purchased on account last month, issued Credit Memorandum 10 for $212 ($200 in merchandise plus 6% sales tax of $12). |
| 3 | Received a check from Rolling Hills Pharmacies for $2,256.62 in payment of its account of $2,300 less a 2% cash dis count of $43.38, Receipt 75. |
| 7 | Gave credit to Saba Nadal for the return of $300 in merchandise sold to him on account, plus sales tax of $18. Issued Credit Memorandum 11 for $318. |
| 10 | Java Shops Inc. sent a check for $1471.70 in payment of its account of $1,500 less a 2% cash discount of $28.30, Receipt 76. |
| 15 | Cash sales were $2,500 plus $150 in sales tax, Tape 25. |
| 15 | Bankcard sales were $2,000 plus $120 in sales tax, Tape 25. |
| 20 | Janson Lee, a neighboring store, needed supplies urgently. Sold it $40 in supplies and received cash from the sale, Receipt 77. |
| 25 | Received a check for $636 from Lee Adkins on account, Receipt 78. |
| 31 | Sold $3,000 in merchandise plus sales tax of $180 on account to Rolling Hills Pharmacies, Sales Slip 114. |
Questions & Answers
QUESTION:
Recording and Posting Sales and Cash Receipts
Buzz Newsstand had the following transactions for the month of January.
| General Ledger | |
| 101 Cash in Bank | 401 Sales |
| 115 Accounts Receivable | 405 Sales Discounts |
| 135 Supplies | 410 Sales Returns and Allowances |
| 215 Sales Tax Payable |
| Accounts Receivable Subsidiary Ledger | |
| ADK Adkins, Lee | NAD Nadal, Saba |
| JAV Java Shops Inc. | ROL Rolling Hills Pharmacies |
Instructions
1. Record the transactions on page 9 of the general journal.
2. Post each transaction to the appropriate general ledger and accounts receivable subsidiary ledger accounts. A partial general ledger and accounts receivable subsidiary ledger are included in the working papers. The current account balances are recorded in the accounts.
| Date | Transactions |
| Jan. 1 | Lee Adkins returned $200 in damaged merchandise purchased on account last month, issued Credit Memorandum 10 for $212 ($200 in merchandise plus 6% sales tax of $12). |
| 3 | Received a check from Rolling Hills Pharmacies for $2,256.62 in payment of its account of $2,300 less a 2% cash dis count of $43.38, Receipt 75. |
| 7 | Gave credit to Saba Nadal for the return of $300 in merchandise sold to him on account, plus sales tax of $18. Issued Credit Memorandum 11 for $318. |
| 10 | Java Shops Inc. sent a check for $1471.70 in payment of its account of $1,500 less a 2% cash discount of $28.30, Receipt 76. |
| 15 | Cash sales were $2,500 plus $150 in sales tax, Tape 25. |
| 15 | Bankcard sales were $2,000 plus $120 in sales tax, Tape 25. |
| 20 | Janson Lee, a neighboring store, needed supplies urgently. Sold it $40 in supplies and received cash from the sale, Receipt 77. |
| 25 | Received a check for $636 from Lee Adkins on account, Receipt 78. |
| 31 | Sold $3,000 in merchandise plus sales tax of $180 on account to Rolling Hills Pharmacies, Sales Slip 114. |
Step 1 of 3
Sales refer to the financial transaction of the business in which goods or services are transferred to the customer in exchange for money.