Harry O'Brien operates Leather Warehouse, a leather shop that sells luggage, handbags, business cases, i other leather goods. During the month of May, the following transactions took place. The applicable sales tax rate is 6%. May 2 Sold merchandise on account to James Koffsky, $250.00, plus sales tax. 9 Sold merchandise on account to Kevin Nolon, $470.00, plus sales tax 12 James Koffsky returned $40.00 worth of merchandise purchased on May 2 for credit. 18 Sold merchandise on account to Joyce McKay, $110.00, plus sales tax 19 Sold merchandise on account to Tim Carney. $165.00, plus sales tax. 22 Received payment from James Koffsky on account. 26 Joyce McK ay was given an allowance of $30.00 when she reported damage in the merchandise purchased May 18 28 Sold merchandise on account to James Koffsky, $500.00, plus sales tax 29 Sold merchandise on account to Kevin Nolon, $230.00, plus sales tax. 31 Received payment from Joyce McKay on account. 31 Cash sales for the month were $2,600, plus sales tax. 1. Enter the above transactions in the appropriate journal. If an amount box does notrequire an entry, leave it blank. If required, round answers to the nearest cent.SALES JOURNALPage 6AccountsSales TaxReceivablePayableDebitSales CreditCreditDate Sale No. To Whom Sold Post. Ref.May 2James Koffsky6.Kevin Nolon18Joyce McKay19Tim Carney28James Koffsky29Kevin Nolon(122)(401)(231)CASH RECEIPTS JOURNALPage 8AccountsSales TaxAccountPost.General ReceivableSalesPayableCashDateCreditedRef.CreditCreditCreditCreditDebitMayJames22Koffsky31 Joyce McKay31 Cash sales(122)(401)(231)(101)2 (i) Journalize the ahove transactions If an amount box does not reauire an entry leave itPrevious 2 (i). Journalize the above transactions. If an amount box does not require an entry, leave itblank. If required, round answers to the nearest cent.Page: 3POST.DATEDESCRIPTIONDEBIT CREDITREF.1 May 12401.12231122/V34 May 26401.142316.122/V2 (ii). Post the entries from the journals to the subsidiary ledgers provided. If an amountbox does not require an entry, leave it blank. If required, round answers to the nearest cent.Enter transactions in chronological order. If your answer is zero, enter "0".GENERAL LEDGERACCOUNTACCOUNTCash101NO.BALANCEPOST.DATEITEMDEBITCREDITDEBITCREDITREF.CR8ACCOUNTAccounts ReceivableACCOUNT122NO.BALANCEPOST.DATEITEMDEBITCREDITREF.DEBITCREDIT

1.Sales journal All the sales transactions done on a credit basis are recorded in the sales journal.…

Answered: Harry O'Brien operates Leather…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 4RE: Refer to RE6-3. Assume Long records accounts receivable and sales using the net price method....

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Harry O'Brien operates Leather Warehouse, a leather shop that sells luggage, handbags, business cases, i other leather goods. During the month of May, the following transactions took place. The applicable sales tax rate is 6%. May 2 Sold merchandise on account to James Koffsky, $250.00, plus sales tax. 9 Sold merchandise on account to Kevin Nolon, $470.00, plus sales tax 12 James Koffsky returned $40.00 worth of merchandise purchased on May 2 for credit. 18 Sold merchandise on account to Joyce McKay, $110.00, plus sales tax 19 Sold merchandise on account to Tim Carney. $165.00, plus sales tax. 22 Received payment from James Koffsky on account. 26 Joyce McK ay was given an allowance of $30.00 when she reported damage in the merchandise purchased May 18 28 Sold merchandise on account to James Koffsky, $500.00, plus sales tax 29 Sold merchandise on account to Kevin Nolon, $230.00, plus sales tax. 31 Received payment from Joyce McKay on account. 31 Cash sales for the month were $2,600, plus sales tax.

1. Enter the above transactions in the appropriate journal. If an amount box does not
require an entry, leave it blank. If required, round answers to the nearest cent.
SALES JOURNAL
Page 6
Accounts
Sales Tax
Receivable
Payable
Debit
Sales Credit
Credit
Date Sale No. To Whom Sold Post. Ref.
May 2
James Koffsky
6.
Kevin Nolon
18
Joyce McKay
19
Tim Carney
28
James Koffsky
29
Kevin Nolon
(122)
(401)
(231)
CASH RECEIPTS JOURNAL
Page 8
Accounts
Sales Tax
Account
Post.
General Receivable
Sales
Payable
Cash
Date
Credited
Ref.
Credit
Credit
Credit
Credit
Debit
May
James
22
Koffsky
31 Joyce McKay
31 Cash sales
(122)
(401)
(231)
(101)
2 (i) Journalize the ahove transactions If an amount box does not reauire an entry leave it
Previous

2 (i). Journalize the above transactions. If an amount box does not require an entry, leave it
blank. If required, round answers to the nearest cent.
Page: 3
POST.
DATE
DESCRIPTION
DEBIT CREDIT
REF.
1 May 12
401.1
2
231
122/V
3
4 May 26
401.1
4
231
6.
122/V
2 (ii). Post the entries from the journals to the subsidiary ledgers provided. If an amount
box does not require an entry, leave it blank. If required, round answers to the nearest cent.
Enter transactions in chronological order. If your answer is zero, enter "0".
GENERAL LEDGER
ACCOUNT
ACCOUNT
Cash
101
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
DEBIT
CREDIT
REF.
CR8
ACCOUNT
Accounts Receivable
ACCOUNT
122
NO.
BALANCE
POST.
DATE
ITEM
DEBIT
CREDIT
REF.
DEBIT
CREDIT

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