Question

Kingbird Corporation made credit sales of $19,800 which are subject to 7% sales tax. The corporation...

Kingbird Corporation made credit sales of $19,800 which are subject to 7% sales tax. The corporation also made cash sales which totaled $28,462 including the 7% sales tax.

Prepare the entry to record Kingbird’s credit sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

Prepare the entry to record Kingbird’s cash sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation

Debit

Credit

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Answer #1
Account Titles and Explanation Debit Credit
Accounts Receivable 21186
       Sales Revenue 19800
       Sales Tax Payable 1386 =19800*7%
Account Titles and Explanation Debit Credit
Cash 28462
       Sales Revenue 26600
       Sales Tax Payable 1862 =28462/107*7
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