Reference no: EM132708296
Question - Town center Furniture specializes in modern living room and dining room furniture. Merchandise sales are subject to an 8 percent sales tax. The firm's credit sales and sales returns and allowances for February 2019 are reflected below, along with the general ledger accounts used to record these transactions. The balances shown are for the beginning of the month.
DATE TRANSACTIONS
Feb 1 Sold a living room sofa to Sun Yoo; issued Sales Slip 1615 for $4,790 plus sales tax of $383.20.
Feb 5 Sold three recliners to Jacqueline Moore; issued Sales Slip 1616 f or $2,350 plus sales tax of $188.
Feb 9 Sold a dining room set to Hazel Tran; issued Sales Slip 1617 for $6,550 plus sales tax of $524.
Feb 11 Accepted a return of one damaged recliner from Jacqueline Moore that was originally sold on Sales Slip 1616 of February 5; issued Credit Memorandum 702 for $1,026, which includes sales tax of $76.00.
Feb 17 Sold living room tables and bookcases to Ann Brown; issued Sales Slip 1618 for $9,550 plus sales tax of $764.
Feb 23 Sold eight dining room chairs to Domingo Salas; issued Sales Slip 1619 for $3,650 plus sales tax of $292.
Feb 25 Gave Ann Brown an allowance for scratches on her bookcases; issued Credit Memorandum 703 for $702, which includes sales tax of $52; the bookcases were originally sold on Sales Slip 1618 of February 17.
Feb 27 Sold a living room sofa and four chairs to Jose Saucedo; issued Sales Slip 1620 for $4,225 plus sales tax of $338.
Feb 28 Sold a dining room table to Mimi Yuki; issued Sales Slip 1621 for $2,050 plus sales tax of $164.
Feb 28 Sold a living room modular wall unit to Alan Baker; issued Sales Slip 1622 for $3,900 plus sales tax of $312.
GENERAL LEDGER ACCOUNTS
111 Accounts Receivable, $16,636 Dr.
231 Sales Tax Payable, $7,270 Cr.
401 Sales
451 Sales Returns and Allowances
Required -
1. Open the general ledger accounts and enter the balances for February 1.
2. Record the transactions in a sales journal and in a general journal.
3. Post the entries from the general journal to the general ledger.
4. Total, prove, and rule the sales journal as of February 28.
5. Post the column totals from the sales journal.
6. Prepare the heading and the Revenue section of the firm's income statement for the month ended February 28, 2019.
Analyze: Based on the beginning balance of the Sales Tax Payable account, what was the amount of net sales for January?