In: Accounting
Journalize the entries to record the following selected transactions: (9.5 pts)
12/20 - Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold was $510.
12/31 - Paid $436 to the state sales tax department for taxes collected.
Date |
Account Titles |
Debits |
Credits |
Journal entries: | ||||||
Date | Accounts title and explanations | Debit $ | Credit $ | |||
20-Dec | Accounts receivable Account Dr. | 963 | ||||
Sales revenue | 900 | |||||
Sales tax payable Account (900*7%) | 63 | |||||
Cost of Goods sold Account Dr. | 510 | |||||
Inventory Account | 510 | |||||
31-Dec | Sales tax payable Account Dr. | 436 | ||||
Cash account | 436 | |||||