using t accounts for cash accounts receivable sales tax payabl 358032

Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. Use a new set of accounts for each part, 1–5.

1. No sales tax.

(a) Merchandise is sold for $250 cash.

(b) Merchandise is sold on account for $225.

(c) Payment is received for merchandise sold on account.

2. 6% sales tax.

(a) Merchandise is sold for $250 cash plus sales tax.

(b) Merchandise is sold on account for $225 plus sales tax.

(c) Payment is received for merchandise sold on account.

3. Cash and credit sales, with returned merchandise.

(a) Merchandise is sold for $481 cash.

(b) $18 of merchandise sold for $481 is returned for a refund.

(c) Merchandise is sold on account for $388.

(d) $24 of merchandise sold for $388 is returned for a credit.

(e) Payment is received for balance owed on merchandise sold on account.

4. 6% sales tax, with returned merchandise.

(a) Merchandise is sold on account for $480 plus sales tax.

(b) Merchandise sold on account for $30 plus sales tax is returned.

(c) The balance on the account is paid in cash.

(d) Merchandise is sold for $300 cash plus sales tax.

(e) $30 of merchandise sold for $300 cash plus sales tax is returned for a refund.

5. Sales on account, with 2/10, n/30 cash discount terms.

(a) Merchandise is sold on account for $280.

(b) The balance is paid within the discount period.

(c) Merchandise is sold on account for $203.

(d) The balance is paid after the discount period.