QS 9-2 Accounting for sales taxes LO C2 Dextra Computing sells merchandise for $7,000 cash on...

QS 9-2 Accounting for sales taxes LO C2

Dextra Computing sells merchandise for $7,000 cash on September 30 (cost of merchandise is $4,900). The sales tax law requires Dextra to collect 5% sales tax on every dollar of merchandise sold. Record the entry for the $7,000 sale and its applicable sales tax. Also record the entry that shows the payment of the 5% tax on this sale to the state government on October 15.

Journal entry worksheet

Record the cash sales and 5% sales tax.
Record the cost of September 30th sales.
Record the entry that shows the payment of the 5% tax on this sale to the state government on October 15.

Expert Solution

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