Reference no: EM131724600
PROBLEM - Bernice Ruel operates Leather Unlimited, a leather shop that sells luggage, handbags, business cases, and other leather goods. During the month of March, the following transactions occurred. The applicable sales tax rate is 6%.
Mar. 2 Sold merchandise on account to Emma Sommers, $250.00, plus sales tax.
9 Sold merchandise on account to Shelly Feinstein, $470.00, plus sales tax.
12 Emma Sommers returned $40.00 worth of merchandise purchased on March 2 for credit.
18 Sold merchandise on account to Maureen Hodge, $110.00, plus sales tax.
19 Sold merchandise on account to Frank MacDonald, $165.00, plus sales tax. 22 Received payment from Emma Sommers on account.
26 Maureen Hodge was given an allowance of $30.00 when she reported damage in the merchandise purchased on March 18.
28 Sold merchandise on account to Emma Sommers, $500.00, plus sales tax.
29 Sold merchandise on account to Shelly Feinstein, $230.00, plus sales tax. 31 Received payment from Maureen Hodge on account.
31 Cash sales for the month were $2,600, plus sales tax.
Required:
1. Enter the above transactions in the general journal.
2. Post the entries from the journal to the general ledger and subsidiary ledgers provided.
3. Prepare a schedule of accounts receivable as of March 31, 20--.