Athletic X-Press Sporting Goods began operations March 1, 2019. 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 Recording sales, sales returns, and cash receipts for a retail store Athletic X-Press Sporting Goods began operations March 1, 2019. 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:
DATE TRANSACTIONS
2019 March1 Sold merchandise on credit to Mark Everest: issued Sales Slip 101 for $700 plus sales tax of $56.
3 Sold merchandise on credit to Emily Ancheta; issued Sales Slip 102 for $300 plus sales tax of $24. 8 Accepted a return of merchandise from Mark Everest; the merchandise was originally sold on Sales
Slip 101 of March 1; issued Credit Memorandum 1 for $108, which included sales tax of $8.
10 Received payment from Mark Everest in payment of his balance owed for merchandise sold on
March 1, less the return of merchandise on March 8.
12 Sold merchandise on credit to Annie Han; issued Sales Slip 103 for $450 plus sales tax of $36.
Recorded cash sales for the period from March 1 to March 15 of $5,000 plus sales tax of $400.
15 Recorded sales for the period from March 1 to March 15 to customers using bank credit cards of
$7,000 plus sales tax of $560. (Record the 3 percent credit card expense at this time.)
25 Sold merchandise on credit to Jason Cataldo; issued Sales Slip 104 for $300 26 28
31 Recorded cash sales for the period from March 16 to March 31 of $5,500 31 Received payment
from American Express for the amount billed on March plus sales tax of $24.
Sold merchandise to customers using American Express for $3,000 plus sales tax of $240.
Received a check from Annie Han of $100 to apply toward her account. plus sales tax of $440.
26, less a 4 percent fee. 31 Recorded sales for the period from March 16 to March 31 to customers
using bank credit cards of $4,000 plus sales tax of $320. (Record the 3 per- cent credit card
expense at this time.)
1. Open the general ledger account and account recievable ledger account.
2. Record the transaction in general journal.
3. Post the enteries from general journa to appropriate accounts.