Answer and Explanation:
The journal entries are shown below:
On August 4
Accounts Receivable (S. Miller) $322.40
To Sales Tax Payable ($310 × 4%) $12.40
To Sales Revenue $310
(Being the sales revenue recorded on account)
On August 6
Accounts Receivable (K. Krtek) $166.40
To Sales Tax Payable ($160 × 4%) $6.40
To Sales Revenue $160
(Being the sales revenue recorded on account)
On August 10
Sales Returns $20
Sales Tax Payable $0.80
To Accounts Receivable (S. Miller) $20.80
(Being the returned inventory is recorded)
On August 13
Cash Account $295.80
Cash Discount (($310 - $20) × 2%) $5.8
To Accounts Receivable (S. Miller) $301.60 ($322.40 - $20.80)
(Being receipt of cash is recorded)
On August 16
Sales Returns $40
Sales Tax Payable $1.60
To Accounts Receivable (K. Krtek) $41.60
(Being the return of goods is recorded)
On August 20:
Cash Account ($166.40 - $41.60) $124.80
To Accounts Receivable (K. Krtek) $124.80
(Being receipt of cash is recorded)
