Reference no: EM131823054
Problem - Anne's Appliances began operations March 1, 2010. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent Sales Tax. During march, Anne's appliances engaged in the following transactions.
DATE TRANSACTIONS
2010
March 1 Sold Merchandise on credit to Bill Ash; issued sales slip 101 for $800 plus sales tax of $48.
March 4 Sold Merchandise on credit to Jane Phan; issued sales slip 102 for $250 plus sales tax of $15.
March 12 Sold merchandise on credit to Art Holts; issued Sales Slip 103 for $540 plus sales tax of $32.40
March 15 Recorded cash sales for the period from March 1 to March 15 of $6000 plus sales tax of $360.
March 25 Sold merchandise on credit to Ken cook; issued Sales Slip 104 for $300 plus sales tax of $18.
March 28 Received a check from Jane Phan of $100 to apply to her account.
March 31 Recorded cash sales for the period from March 16 to March 31 of $4500 plus sales tax of $270.
March 31 Received payment in full from Bill Ash for the sale of march 1.
Instructions -
1. Open the general ledger accounts indicated below.
2. Record the transactions in general journal.
3. Post the entries from the general journal to appropriate general ledger accounts.
General ledger accounts
101 Cash 221 Sales Tax payable
111 Accounts receivables 401 Sales
Analyze: What were the total cash receipts during March?