College Accounting, Chapters 1-27
College Accounting, Chapters 1-27
23rd Edition
ISBN: 9781337794756
Author: HEINTZ, James A.
Publisher: Cengage Learning,
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Chapter 10, Problem 1MP

Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, “If your pet is not becoming to you, he should be coming to us.” The Harlands maintain a sales tax payable account throughout the month to account for the 6% sales tax. They use a general journal, general ledger, and accounts receivable ledger. The following sales and cash collections took place during the month of September:

Sept. 2    Sold a fish aquarium on account to Ken Shank, $125 plus tax of $7.50, terms n/30. Sale No. 101.

3    Sold dog food on account to Nancy Truelove, $68.25 plus tax of $4.10, terms n/30. Sale No. 102.

5    Sold a bird cage on account to Jean Warkentin, $43.95 plus tax of $2.64, terms n/30. Sale No. 103.

8    Cash sales for the week were $2,332.45 plus tax of $139.95.

10    Received cash for boarding and grooming services, $625 plus tax of $37.50.

11    Jean Warkentin stopped by the store to point out a minor defect in the bird cage purchased in Sale No. 103. The Harlands offered a sales allowance of $10 plus tax on the price of the cage which satisfied Warkentin.

12    Sold a cockatoo on account to Tully Shaw, $1,200 plus tax of $72, terms n/30. Sale No. 104.

14    Received cash on account from Rosa Alanso, $256.

15    Rosa Alanso returned merchandise, $93.28 including tax of $5.28.

15    Cash sales for the week were $2,656.85 plus tax of $159.41.

16    Received cash on account from Nancy Truelove, $58.25.

18    Received cash for boarding and grooming services, $535 plus tax of $32.10.

19    Received cash on account from Ed Cochran, $63.25.

20    Sold pet supplies on account to Susan Hays, $83.33 plus tax of $5, terms n/30. Sale No. 105.

21    Sold three Labrador Retriever puppies to All American Day Camp, $375 plus tax of $22.50, terms n/30. Sale No. 106.

22    Cash sales for the week were $3,122.45 plus tax of $187.35.

23    Received cash for boarding and grooming services, $515 plus tax of $30.90.

25    Received cash on account from Ken Shank, $132.50.

26    Received cash on account from Nancy Truelove, $72.35.

27    Received cash on account from Joe Gloy, $273.25.

28    Borrowed cash to purchase a pet limousine, $11,000.

29    Cash sales for the week were $2,835.45 plus tax of $170.13.

30    Received cash for boarding and grooming services, $488 plus tax of $29.28.

Wayward had the following general ledger account balances as of September 1:

Chapter 10, Problem 1MP, Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, If your pet , example  1

Wayward also had the following accounts receivable ledger balances as of September 1:

Chapter 10, Problem 1MP, Geoff and Sandy Harland own and operate Wayward Kennel and Pet Supply. Their motto is, If your pet , example  2

New customers opening accounts during September were as follows:

All American Day Camp

3025 Old Mill Run

Bloomington, IN 47408-1080

Tully Shaw

3315 Longview Avenue

Bloomington, IN 47401-7223

Susan Hays

1424 Jackson Creek Road

Nashville, IN 47448-2245

Jean Warkentin

1813 Deep Well Court

Bloomington, IN 47401-5124

Ken Shank

6422 E. Bender Road

Bloomington, IN 47401-7756

REQUIRED

  1. 1. Enter the transactions for the month of September in a general journal. (Begin with page 7.)
  2. 2. Post the entries to the general and subsidiary ledgers. Open new accounts for any customers who did not have a balance as of September 1.
  3. 3. Prepare a schedule of accounts receivable.
  4. 4. Compute the net sales for the month of September.

1.

Expert Solution
Check Mark
To determine

Journalize the transactions for the month of September.

Explanation of Solution

Journal entry: Journal entry is a set of economic events which can be measured in monetary terms. These are recorded chronologically and systematically.

Debit and credit rules:

  • Debit an increase in asset account, increase in expense account, decrease in liability account, and decrease in stockholders’ equity accounts.
  • Credit decrease in asset account, increase in revenue account, increase in liability account, and increase in stockholders’ equity accounts.

Journalize the transactions for the month of September.

Transaction on September 2:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September2Accounts Receivable, KS122/✓132.50 
   Sales401 125.00
   Sales Tax Payable231 7.50
  (Record credit sale)   

Table (1)

Description:

  • Accounts Receivable, KS is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 3:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September3Accounts Receivable, NT122/✓72.35 
   Sales401 68.25
   Sales Tax Payable231 4.10
  (Record credit sale)   

Table (2)

Description:

  • Accounts Receivable, NT is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 5:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September5Accounts Receivable, JW122/✓46.59 
   Sales401 43.95
   Sales Tax Payable231 2.64
  (Record credit sale)   

Table (3)

Description:

  • Accounts Receivable, JW is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 8:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September8Cash1012,472.40 
   Sales401 2,332.45
   Sales Tax Payable231 139.95
  (Record cash sales)   

Table (4)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 10:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September10Cash101662.50 
   Boarding and Grooming Revenue402 625.00
   Sales Tax Payable231 37.50
  (Record cash sales)   

Table (5)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Boarding and Grooming Revenue is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 11:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September11Sales Returns and Allowances401.110.00 
  Sales Tax Payable2310.60 
   Accounts Receivable, JW122/✓ 10.60
  (Record grant of sales allowance)   

Table (6)

Description:

  • Sales Returns and Allowances is a contra-revenue account, and contra-revenue accounts decrease the equity value, and a decrease in equity is debited.
  • Sales Tax Payable is a liability account. Since the payable decreased due to returns, the liability decreased, and a decrease in liability is debited.
  • Accounts Receivable, JW is an asset account. Since sales allowance is granted, amount to be received has decreased, asset account is decreased, and a decrease in asset is credited.

Working Note 1:

Compute sales tax payable amount.

Sales tax payable = Sales returns×Sales tax percentage= $10×6%= $0.60

Working Note 2:

Compute accounts receivable amount (Refer to Working Note 1 for value of sales tax payable).

Accounts receivable, JW = Sales returns+Sales tax payable= $10.00+$0.60= $10.60

Transaction on September 12:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September12Accounts Receivable, TS122/✓1,272 
   Sales401 1,200
   Sales Tax Payable231 72
  (Record credit sale)   

Table (7)

Description:

  • Accounts Receivable, TS is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 14:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September14Cash101256 
   Accounts Receivable, RA122/✓ 256
  (Record cash received for sales on account)   

Table (8)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, RA is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 15:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September15Sales Returns and Allowances401.188.00 
  Sales Tax Payable2315.28 
   Accounts Receivable, RA122/✓ 93.28
  (Record goods returned)   

Table (9)

Description:

  • Sales Returns and Allowances is a contra-revenue account, and contra-revenue accounts decrease the equity value, and a decrease in equity is debited.
  • Sales Tax Payable is a liability account. Since the payable decreased due to returns, the liability decreased, and a decrease in liability is debited.
  • Accounts Receivable, RA is an asset account. Since inventory is returned, amount to be received has decreased, asset account is decreased, and a decrease in asset is credited.

Transaction on September 15:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September15Cash1012,816.26 
   Sales401 2,656.85
   Sales Tax Payable231 159.41
  (Record cash sales)   

Table (10)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 16:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September16Cash10158.25 
   Accounts Receivable, NT122/✓ 58.25
  (Record cash received for sales on account)   

Table (11)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, NT is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 18:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September18Cash101567.10 
   Boarding and Grooming Revenue402 535.00
   Sales Tax Payable231 32.10
  (Record cash sales)   

Table (12)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Boarding and Grooming Revenue is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 19:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September19Cash10163.25 
   Accounts Receivable, EC122/✓ 63.25
  (Record cash received for sales on account)   

Table (13)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, EC is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 20:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September20Accounts Receivable, SH122/✓88.33 
   Sales401 83.33
   Sales Tax Payable231 5.00
  (Record credit sale)   

Table (14)

Description:

  • Accounts Receivable, SH is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 21:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September21Accounts Receivable, AD Camp122/✓397.50 
   Sales401 375.00
   Sales Tax Payable231 22.50
  (Record credit sale)   

Table (15)

Description:

  • Accounts Receivable, AD Camp is an asset account. Since sales is made on account, the receivables increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 22:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September22Cash1013,309.80 
   Sales401 3,122.45
   Sales Tax Payable231 187.35
  (Record cash sales)   

Table (16)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 23:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September23Cash101545.90 
   Boarding and Grooming Revenue402 515.00
   Sales Tax Payable231 30.90
  (Record cash sales)   

Table (17)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Boarding and Grooming Revenue is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 25:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September25Cash101132.50 
   Accounts Receivable, KS122/✓ 132.50
  (Record cash received for sales on account)   

Table (18)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, KS is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 26:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September26Cash10172.35 
   Accounts Receivable, NT122/✓ 72.35
  (Record cash received for sales on account)   

Table (19)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, NT is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 27:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September27Cash101273.25 
   Accounts Receivable, JG122/✓ 273.25
  (Record cash received for sales on account)   

Table (20)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Accounts Receivable, JG is an asset account. Since amount to be received has decreased, asset account decreased, and a decrease in asset is credited.

Transaction on September 28:

Page: 7
DateAccount Titles and ExplanationPost. Ref.Debit ($)Credit ($)
September28Cash10111,000 
   Notes Payable201 11,000
  (Record cash borrowed)   

Table (21)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Notes Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 29:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September29Cash1013,005.58 
   Sales401 2,835.45
   Sales Tax Payable231 170.13
  (Record cash sales)   

Table (22)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Sales is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

Transaction on September 30:

Page: 7
DateAccount Titles and ExplanationPost Ref.Debit ($)Credit ($)
September30Cash101517.28 
   Boarding and Grooming Revenue402 488.00
   Sales Tax Payable231 29.28
  (Record cash sales)   

Table (23)

Description:

  • Cash is an asset account. Since cash is received, asset account increased, and an increase in asset is debited.
  • Boarding and Grooming Revenue is a revenue account. Since revenues and gains increase equity, equity value is increased, and an increase in equity is credited.
  • Sales Tax Payable is a liability account. Since the payable increased, the liability increased, and an increase in liability is credited.

2.

Expert Solution
Check Mark
To determine

Post the journalized entries into the accounts of the general ledger, and the customer accounts in accounts receivable ledger.

Explanation of Solution

Posting transactions: The process of transferring the journalized transactions into the accounts of the ledger is known as posting the transactions.

Post the journalized entries into the accounts of the general ledger.

ACCOUNT    Cash                                                                           ACCOUNT NO. 101
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance   23,500.25 
 8 J72,472.40 25,972.65 
 10 J7662.50 26,635.15 
 14 J7256.00 26,891.15 
 15 J72,816.26 29,707.41 
 16 J758.25 29,765.66 
 18 J7567.10 30,332.76 
 19 J763.25 30,396.01 
 22 J73,309.80 33,705.81 
 23 J7545.90 34,251.71 
 25 J7132.50 34,384.21 
 26 J772.35 34,456.56 
 27 J7273.25 34,729.81 
 28 J711,000.00 45,729.81 
 29 J73,005.58 48,735.39 
 30 J7517.28 49,252.67 

Table (24)

ACCOUNT    Accounts Receivable                                               ACCOUNT NO. 122
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance   850.75 
 2 J7132.50 983.25 
 3 J772.35 1,055.60 
 5 J746.59 1,102.19 
 11 J7 10.601,091.59 
 12 J71,272.00 2,363.59 
 14 J7 256.002,107.59 
 15 J7 93.282,014.31 
 16 J7 58.251,956.06 
 19 J7 63.251,892.81 
 20 J788.33 1,981.14 
 21 J7397.50 2,378.64 
 25 J7 132.502,246.14 
 26 J7 72.352,173.79 
 27 J7 273.251,900.54 

Table (25)

ACCOUNT    Notes Payable                                                        ACCOUNT NO. 201
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance    2,500
 28 J7 11,000 13,500

Table (26)

ACCOUNT    Sales Tax Payable                                                 ACCOUNT NO. 231
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance    909.90
 2 J7 7.50 917.40
 3 J7 4.10 921.50
 5 J7 2.64 924.14
 8 J7 139.95 1,064.09
 10 J7 37.50 1,101.59
 11 J70.60  1,100.99
 12 J7 72.00 1,172.99
 15 J75.28  1,167.71
 15 J7 159.41 1,327.12
 18 J7 32.10 1,359.22
 20 J7 5.00 1,364.22
 21 J7 22.50 1,386.72
 22 J7 187.35 1,574.07
 23 J7 30.90 1,604.97
 29 J7 170.13 1,775.10
 30 J7 29.28 1,804.38

Table (27)

ACCOUNT    Sales                                                                         ACCOUNT NO. 401
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance    13,050.48
 2 J7 125.00 13,050.48
 3 J7 68.25 13,243.73
 5 J7 43.95 13,287.68
 8 J7 2,332.45 15,620.13
 12 J7 1,200.00 16,820.13
 15 J7 2,656.85 19,476.98
 20 J7 83.33 19,560.31
 21 J7 375.00 19,935.31
 22 J7 3,122.45 23,057.76
 29 J7 2,835.45 25,893.21

Table (28)

ACCOUNT    Sales Returns and Allowances                            ACCOUNT NO. 401.1
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance   86.00 
 11 J710.00 96.00 
 15 J788.00 184.00 

Table (29)

ACCOUNT    Boarding and Grooming Revenue                        ACCOUNT NO. 402
DateItemPost. Ref.Debit ($)Credit ($)Balance
Debit ($)Credit ($)
September1Balance    2,115.00
 10 J7 625.00 2,740.00
 18 J7 535.00 3,275.00
 23 J7 515.00 3,790.00
 30 J7 488.00 4,278.00

Table (30)

Post the journalized entries into the customer accounts in accounts receivable ledger.

NAME          AD Camp
ADDRESS   3025, OM Run, City B, State IN 47408-1080 
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September21 J7397.50 397.50

Table (31)

NAME          RA
ADDRESS    2541, E Street, City B, State IN 47401-5356
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September1Balance  456.00
 14 J7 256.00200.00
 15 J7 93.28106.72

Table (32)

NAME          EC
ADDRESS    2669, W Drive, City B, State IN 47401-5446
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September1Balance  63.25
 19 J7 63.250

Table (33)

NAME          JG
ADDRESS   1458, P Avenue, City B, State IN 47304-2682
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September1Balance  273.25
 27 J7 273.250

Table (34)

NAME          SH
ADDRESS   1424, JC Road, City N, State IN 47448-2245
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September20 J788.33 88.33

Table (35)

NAME          KS
ADDRESS   6422, EB Road, City B, State IN 47401-7756
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September2BalanceJ7132.50 132.50
 19 J7 132.500

Table (36)

NAME          TS
ADDRESS   3315, L Avenue, City N, State IN 47401-7223
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September12 J71,272.00 1,272.00

Table (37)

NAME          NT
ADDRESS   2300, EN Road, City C, State IN 46229-4824
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September1Balance  58.25
 3 J772.35 130.60
 16 J7 58.2572.35
 26 J7 72.350

Table (38)

NAME          JW
ADDRESS   1813, DP Court, City B, State IN 47401-5124
DateItemPost. Ref.Debit ($)Credit ($)Balance ($)
September5 J746.59 46.59
 3 J7 10.6035.99

Table (39)

3.

Expert Solution
Check Mark
To determine

Prepare the schedule of accounts receivable for W Kennel and P Supply as at September 30, 20--.

Explanation of Solution

Accounts receivable schedule: This is the schedule which is prepared to verify that the total balances of all the customers in the accounts receivable ledger, equals the balance of Accounts Receivable in the general ledger.

Prepare the schedule of accounts receivable for W Kennel and P Supply as at September 30, 20--.

W Kennel and P Supply
Schedule of Accounts Receivable
September 30, 20--
AD Camp$397.50
RA106.72
SH88.33
TS1,272.00
JW35.99
Total$1,900.54

Table (40)

Note: Refer to Requirement 2 for the value and computation of customer balances.

Conclusion

Thus, the schedule of accounts receivable of W Kennel and P Supply shows a balance of $1,900.54, as of September 30, 20--.

4.

Expert Solution
Check Mark
To determine

Ascertain the net sales for W Kennel and P Supply for the month of September.

Explanation of Solution

Net sales: The amount of price of merchandise sold during a certain period is referred to as sales revenue. Net sales is the gross sales, minus sales returns and allowances, and sales discounts.

Formula to compute net sales:

Net sales = Gross sales–Sales returns and allowances–Sales discounts

Ascertain the net sales for W Kennel and P Supply for the month of September.

Net sales = Gross sales–Sales returns and allowances–Sales discounts=$12,842.73–$98.00–$0=$12,744.73

Note: Refer to Requirement 2 for the value and computation of the balances.

Conclusion

Thus, net sales for W Kennel and P Supply for the month of September is $12,744.73.

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Chapter 10 Solutions

College Accounting, Chapters 1-27

Ch. 10 - Prob. 1CECh. 10 - Prepare journal entries for the following sales...Ch. 10 - Prob. 3CECh. 10 - On March 24, MS Companys Accounts Receivable...Ch. 10 - Prob. 1RQCh. 10 - What is the purpose of a credit memo?Ch. 10 - Prob. 3RQCh. 10 - Prob. 4RQCh. 10 - Prob. 5RQCh. 10 - Prob. 6RQCh. 10 - What steps are followed in posting cash receipts...Ch. 10 - What steps are followed in posting cash receipts...Ch. 10 - Prob. 9RQCh. 10 - Prob. 1SEACh. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - Prob. 3SEACh. 10 - SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end...Ch. 10 - Prob. 5SEACh. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - Prob. 7SEACh. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS J. K. Bijan owns a retail...Ch. 10 - Prob. 11SPACh. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Sourk...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - Prob. 1SEBCh. 10 - SALES TRANSACTIONS AND T ACCOUNTS Using T accounts...Ch. 10 - Prob. 3SEBCh. 10 - SALES RETURNS AND ALLOWANCES ADJUSTMENT At the end...Ch. 10 - Prob. 5SEBCh. 10 - JOURNALIZING SALES TRANSACTIONS Enter the...Ch. 10 - JOURNALIZING SALES RETURNS AND ALLOWANCES Enter...Ch. 10 - JOURNALIZING CASH RECEIPTS Enter the following...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE From the accounts...Ch. 10 - SALES TRANSACTIONS T. M. Maxwell owns a retail...Ch. 10 - CASH RECEIPTS TRANSACTIONS Color Florists, a...Ch. 10 - SALES AND CASH RECEIPTS TRANSACTIONS Paul Jackson...Ch. 10 - SCHEDULE OF ACCOUNTS RECEIVABLE Based on the...Ch. 10 - You and your spouse have separate charge accounts...Ch. 10 - Prob. 1ECCh. 10 - Geoff and Sandy Harland own and operate Wayward...Ch. 10 - Enter the following transactions in a general...
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