Reference no: EM131895839
Problem - The Appliance Store began operations March 1, 2019. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. During March, The Appliance Store engaged in the following transactions:
DATE TRANSACTIONS
2019
March 1 Sold merchandise on credit to Dave Allen; issued Sales Slip 101 for $600 plus sales tax of $36.
March 4 Sold merchandise on credit to Castor Phan; issued Sales Slip 102 for $950 plus sales tax of $57.
March 12 Sold merchandise on credit to Chris Hughes; issued Sales Slip 103 for $1,100 plus sales tax of $66.
March 15 Recorded cash sales for the period from March 1 to March 15 of $7,300 plus sales tax of $438.
March 25 Sold merchandise on credit to Brian Cooley; issued Sales Slip 104 for $900 plus sales tax of $54.
March 28 Received a check from Castor Phan of $190 to apply toward his account.
March 31 Recorded cash sales for the period from March 16 to March 31 of $4,200 plus sales tax of $252.
March 31 Received payment in full from Dave Allen for the sale of March 1.
Required:
1. Record the transactions in a general journal.
2. Post the entries from the general journal to the appropriate general ledger accounts.
Analyze: What were the total cash receipts during March?