The Milk Co

question 58

Essay

The Milk Co. had the following transactions involving the sale of merchandise. You are to prepare the necessary general journal entries. All sales are subject to a 6% sales tax. Terms of sale were n/30.
April 13 Sold merchandise priced at $600 to James Ellsworth on account.
April 14 Sold merchandise priced at $325 to a cash customer.
April 15 Sold merchandise priced at $175 to Dana Carter on account.
April 16 Sold merchandise priced at $700 to a cash customer.
April 20 The customer of April 14 returned $50 worth of merchandise for a cash refund.
April 25 Received full payment from Dana Carter.
April 30 Paid the amount of sales tax to the state.
-Prepare the necessary general journal entry for April 16.
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Definitions:

Zip Code

A series of letters, numbers, or both, assigned to different areas to facilitate mail delivery and identify locations specifically in the United States.

Trade Area

The geographic region from which a business draws its customers.

Market Segments

Subsets of a market made up of people or organizations with one or more characteristics that cause them to demand similar product and/or services based on qualities like needs, characteristics, or behaviors.

Excessive Costs

Costs that exceed the expected or budgeted amount, often leading to financial strain for a business.