Question

On July 5, Brenner Company recorded sales of merchandise inventory on account, $65,000. The sales were subject to sales tax of 3%. On August 15, Brenner Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Jul. 5 Choose from any list or enter any number in the input fields and then click Check Answer. ? part Clear All Check Answer remaining

Answer 1

Solution:

Date	Account title	Debit	Credit
05-Jul	Accounts Receivable	66950
	Sales Revenue		65000
	Sales Tax payable ($65000*3%)		1950
	(To record the sale on July 5)
15-Aug	Sales tax payable	1950
	Cash		1950
	(To record the payment of sales tax)