College Accounting 2nd Edition by David Haddock, John Price,Michael Farina

Exercise 13

Recording sales, sales returns, and cash receipts for a retail store
Athletic X-Press Sporting Goods began operations March 1, 2013. The firm sells its merchandise for cash; on open account; to customers using bank credit cards, such as MasterCard and VISA; and, to customers using American Express. Merchandise sales are subject to an 8 percent sales tax. The bank credit cards charge a 3 percent fee. American Express charges a 4 percent fee. During March, Athletic X-Press Sporting Goods engaged in the following transactions:


INSTRUCTIONS
1. Open the general ledger account and accounts receivable ledger accounts indicated below.
2. Record the transactions in a general journal. Use 1 as the journal page number.
3. Post the entries from the general journal to the appropriate account in the general ledger and in the accounts receivable ledger.
4. Prepare a schedule of accounts receivable. Compare the balance of the Accounts Receivable control account with the total of the schedule.
GENERAL LEDGER ACCOUNTS

ACCOUNTS RECEIVABLE LEDGER ACCOUNTS