Question

QS 11-2 Accounting for sales taxes LO C2 Dextra Computing sells merchandise for $8,000 cash on September 30 (cost of merchandise is $5,600). The sales tax law requires Dextra to collect 2% sales tax on every dollar of merchandise sold. Record the entry for the $8,000 sale and its applicable sales tax. Also record the entry that shows the payment of the 2% tax on this sale to the state government on October 15. View transaction list Journal entry worksheet Record the cash sales and 2% sales tax. Note: Enter debits before credits. General Journal Debit Credit Date Sep 30 Record entry Clear entry View general journal

Answer 1

Journal Entries :-

Date	Particulars	Debit($)	Credit($)
Sep 30	Cash	8160
	Sales		8000
	Sales Taxes Payable ($8000*2%)		160
	(Being Record Cash Receipt of Sales and Sales Tax)
Sep 30	Cost of Goods sold	5600
	Merchandise Inventory		5600
	(Being Record Cost of Goods Sold)
Oct 15	Sales Taxes Payable	160
	Cash		160
	(Being Record Payment of Sales Tax)