Problem 7.1A (Algo) Recording sales and cash receipts for a retail store. LO 7-1 Creative Kitchens began operations March 1, 20X1. The firm sells its merchandise for cash and on open account. Sales are subject to a 6 percent sales tax. The terms for all sales on credit are net 30. During March, Creative Kitchens engaged in the following transactions: DATE TRANSACTIONS March 1, 20X1 Sold merchandise on credit to Bob D’Angelo; issued Sales Slip 101 for $600 plus sales tax of $36. March 4, 20X1 Sold merchandise on credit to Geeta Anchal; issued Sales Slip 102 for $950 plus sales tax of $57. March 12, 20X1 Sold merchandise on credit to Candy Martinez; issued Sales Slip 103 for $1,100 plus sales tax of $66. March 15, 20X1 Recorded cash sales for the period from March 1 to March 15 of $6,700 plus sales tax of $402. March 25, 20X1 Sold merchandise on credit to Jack O’Donnell; issued Sales Slip 104 for $900 plus sales tax of $54. March 28, 20X1 Received a check from Geeta Anchal of $130 to apply toward his account. March 31, 20X1 Recorded cash sales for the period from March 16 to March 31 of $3,600 plus sales tax of $216. March 31, 20X1 Received payment in full from Bob D’Angelo for the sale of March 1. Required: Record the transactions in a general journal. Post the entries from the general journal to the appropriate general ledger accounts. GENERAL LEDGER ACCOUNTS 101 Cash, $12,910 Debit 221 Sales Tax Payable 111 Accounts Receivable 401 Sales Analyze: What were the total cash receipts during March
