Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $7,600 of...

Sales Tax Transactions

Journalize the entries to record the following selected transactions.

a. Sold $7,600 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $4,480.

If an amount box does not require an entry, leave it blank.

b. Paid $45,520 to the state sales tax department for taxes collected.

Solutions

Expert Solution

General Journal	Debit	Credit
Accounts Receivable	$7,980
Sales Revenue		$7,600
Sales Tax Payable($7,600 * 5%)		$380

Cost of goods sold	$4,480
Inventory		$4,480

General Journal	Debit	Credit
Sales Tax Payable	$45,520
Cash		$45,520

ekkarill92 answered 1 year ago

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