Question

1. Big 4 Sporting Goods sold $1,000,000 of products in March 2019 to retail customers in San Diego. San Diego imposes an 8.0% sales tax. Customers returned $50,000 of items during March 2019.   Big 4 paid the sales tax due for March on April 5. Show the entries in the T accounts below (ignore the allowance method of accounting for sales returns.)

Cash				Sales Revenue				Sales Tax Payable
Sales Tax Expense				Sales Returns				Accounts Receivable

Answer 1

Cash
Date	Particular	Amount	Date	Particular	Amount
			Apr-05	Sales Tax Payable	$80,000
Sales Revenue
Date	Particular	Amount	Date	Particular	Amount
			Mar-19	Accounts Receivable	$1,000,000
Sales Tax Payable
Date	Particular	Amount	Date	Particular	Amount
Apr-05	Cash	$80,000	Mar-19	Sales Tax Expense	$80,000
Sales Tax Expense
Date	Particular	Amount	Date	Particular	Amount
Mar-19	Sales Tax Payable	$80,000
Sales Retutn
Date	Particular	Amount	Date	Particular	Amount
Mar-19	Accounts Receivable	$50,000
Accounts Receivable
Date	Particular	Amount	Date	Particular	Amount
Mar-19	Sales	$1,000,000	Mar-19	Sales Return	$50,000

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