Sales transactions are recorded in the general journal by debiting Accounts Receivable and crediting Sales. The entry is posted to the Accounts Receivable and Sales accounts in the general ledger. The entries are also posted daily to the accounts receivable ledger. When a customer returns merchandise, or when his or her bill is reduced by an allowance for defective or damaged merchandise, the Sales Returns and Allowances account is debited and the Accounts Receivable account is credited. The entry is recorded in the general journal and posted to both the general ledger and the accounts receivable ledger. Where required, sales tax is collected from customers by the retailer and later paid to the appropriate tax authorities. When goods are sold, the sales tax is charged to the customer and recorded at the time of sale. The entry involves recording a debit to Accounts Receivable or Cash and credits to Sales and Sales Tax Payable. Record the following transactions for Brook's Floor and Tile Supply in general journal form. • July 17 Sold merchandise on account to Erica's Interiors Inc., invoice no. 1501, $1,105. ⚫ July 31 Erica's Interiors Inc. returned $100 of the merchandise. Brook's Floor and Tile Supply issued credit memo no. 104. ⚫ August 5 Sold merchandise on account to F. Tyler, invoice no. 1502, $850 plus $46.75 sales tax. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. DATE July 17 GENERAL JOURNAL DESCRIPTION Sold merchandise to Erica's Interiors Inc., Inv. No. 1501 POST. REF. DEBIT CREDIT
Sales transactions are recorded in the general journal by debiting Accounts Receivable and crediting Sales. The entry is posted to the Accounts Receivable and Sales accounts in the general ledger. The entries are also posted daily to the accounts receivable ledger. When a customer returns merchandise, or when his or her bill is reduced by an allowance for defective or damaged merchandise, the Sales Returns and Allowances account is debited and the Accounts Receivable account is credited. The entry is recorded in the general journal and posted to both the general ledger and the accounts receivable ledger. Where required, sales tax is collected from customers by the retailer and later paid to the appropriate tax authorities. When goods are sold, the sales tax is charged to the customer and recorded at the time of sale. The entry involves recording a debit to Accounts Receivable or Cash and credits to Sales and Sales Tax Payable. Record the following transactions for Brook's Floor and Tile Supply in general journal form. • July 17 Sold merchandise on account to Erica's Interiors Inc., invoice no. 1501, $1,105. ⚫ July 31 Erica's Interiors Inc. returned $100 of the merchandise. Brook's Floor and Tile Supply issued credit memo no. 104. ⚫ August 5 Sold merchandise on account to F. Tyler, invoice no. 1502, $850 plus $46.75 sales tax. If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank. DATE July 17 GENERAL JOURNAL DESCRIPTION Sold merchandise to Erica's Interiors Inc., Inv. No. 1501 POST. REF. DEBIT CREDIT
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Transcribed Image Text:Sales transactions are recorded in the general journal by debiting Accounts Receivable and crediting Sales. The entry is posted to the Accounts Receivable and Sales accounts
in the general ledger. The entries are also posted daily to the accounts receivable ledger.
When a customer returns merchandise, or when his or her bill is reduced by an allowance for defective or damaged merchandise, the Sales Returns and Allowances account
is debited and the Accounts Receivable account is credited. The entry is recorded in the general journal and posted to both the general ledger and the accounts receivable
ledger.
Where required, sales tax is collected from customers by the retailer and later paid to the appropriate tax authorities. When goods are sold, the sales tax is charged to the
customer and recorded at the time of sale. The entry involves recording a debit to Accounts Receivable or Cash and credits to Sales and Sales Tax Payable.
Record the following transactions for Brook's Floor and Tile Supply in general journal form.
• July 17 Sold merchandise on account to Erica's Interiors Inc., invoice no. 1501, $1,105.
⚫ July 31 Erica's Interiors Inc. returned $100 of the merchandise. Brook's Floor and Tile Supply issued credit memo no. 104.
⚫ August 5 Sold merchandise on account to F. Tyler, invoice no. 1502, $850 plus $46.75 sales tax.
If required, round your answers to the nearest cent. If an amount box does not require an entry, leave it blank.
DATE
July 17
GENERAL JOURNAL
DESCRIPTION
Sold merchandise to Erica's Interiors Inc., Inv. No. 1501
POST. REF.
DEBIT
CREDIT
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