Answer:
Explanation:
The journal entries are shown below:
April 2
Cash A/c Dr $2,700
To Sales revenue A/c $2,500
To Sales tax payable $200 ($2,500 × 8%)
(Being merchandise is sold for cash with sales tax)
April 3
Sales returns and allowances A/c Dr $250
Sales tax payable A/c Dr $20 ($250 × 8%)
To Cash A/c $270
(Being returned goods with sales tax is recorded)
April 4
Accounts receivable A/c Dr $1,134
To Sales revenue $1,050
To Sales tax payable $84 ($1,050 × 8%)
(Being merchandise is sold on credit with sales tax)
April 6
Sales returns and allowances A/c Dr $150
Sales tax payable A/c Dr $12 ($150 × 8%)
To Accounts receivable $162
(Being returned goods with sales tax is recorded)
April 30
Cash A/c Dr $972 ($1,134 - $162)
To Accounts receivable $972
(Being the amount is received)
