Question

Bookmarks People Tab Window Help 10 Assic X CengageNoWv2 x C Purchase-Relatex Journalize entrie X Upload Docume x evaluatia takeAssignment/takeAssignmentMain.do?invoker=&takeAssignmentSessionLocator &inprogress-false facebook y Twitter YouTube Letterboxd. Your IMDb - Movies, T... MicrosoftWord Barstool Sports CBOOK Show Me How calculator Printem Sales Tax Transactions Journalize the entries to record the following selected transactions a. Sold 57,900 of merchandise on account, subject to a sales tax of 8%. The cost of the goods sold was $4,660. If an amount box does not require an entry leave it bank Accounts Receivable 100 x Sales Sales Tax Payable Cost of Goods Sold Twentory b. Paid 550,120 to the state sales tax department for taxes collected, Sales Tax Payable Cach Email Pacter Seard a

Answer 1

When there is a sale, we should collect from the customer the sale value including sales tax, if any, so the entry would be,

Account receivable 8,532

Sales 7,900

Sales tax payable 632

Being goods sold and sales tax collected.

Cost of goods sold 4,660

Inventory 4,660

Being inventory adjusted to the extent of sales.

And the next entry would be,

Sales tax payable 632

Cash 632

Being sales tax paid