a. Sold $852,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $502,680.

Sales Tax Transactions

Journalize the entries to record the following selected transactions.

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

	Accounts Receivable
	Sales
	Sales Tax Payable
	Cost of Goods Sold
	Inventory

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

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

	Sales Tax Payable
	Cash

Solutions

Expert Solution

Accounts title	Debit	Credit
Accounts Receivable	$911,640
Sales		$852,000
Sales Tax Payable [$852000 x 7%]		$59,640
Cost of Goods Sold	$502,680
Inventory		$502,680

Accounts title	Debit	Credit
Sales tax Payable	$59,640
Cash		$59,640

ekkarill92 answered 1 year ago

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