Chapter 9, Problem 1PA

Bell Florists sells flowers on a retail basis. Most of the sales are for cash; however, a few steady customers have credit accounts. Bell’s sales staff fills out a sales slip for each sale. There is a state retail sales tax of 5 percent, which is collected by the retailer and submitted to the state. The balances of the accounts as of March 1 have been recorded in the general ledger in your Working Papers or in CengageNow. The following represent Bell Florists’ charge sales for March:

Mar. 4    Sold potted plant on account to C. Morales, sales slip no. 242, $27, plus sales tax of $1.35, total $28.35.

6    Sold floral arrangement on account to R. Dixon, sales slip no. 267, $54, plus sales tax of $2.70, total $56.70.

12    Sold corsage on account to B. Cox, sales slip no. 279, $16, plus sales tax of $0.80, total $16.80.

16    Sold wreath on account to All-Star Legion, sales slip no. 296, $104, plus sales tax of $5.20, total $109.20.

18    Sold floral arrangements on account to Tucker Funeral Home, sales slip no. 314, $260, plus sales tax of $13, total $273.

21    Tucker Funeral Home complained about a wrinkled ribbon on the floral arrangement. Bell Florists allowed a $30 credit plus sales tax of $1.50, credit memo no. 27.

23    Sold flower arrangements on account to Price Savings and Loan Association for its fifth anniversary, sales slip no. 337, $180, plus sales tax of $9, total $189.

24    Allowed Price Savings and Loan Association credit, $25, plus sales tax of $1.25, because of a few withered blossoms in floral arrangements, credit memo no. 28.

Required

1. 1. Record these transactions in the general journal.*
2. 2. Post the amounts from the general journal to the general ledger and accounts receivable ledger: Accounts Receivable 113, Sales Tax Payable 214, Sales 411, Sales Returns and Allowances 412.
3. 3. Prepare a schedule of accounts receivable and compare its total with the balance of the Accounts Receivable controlling account.