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the sales slip for belle tire show $1500

the sales slip for belle tire show $1500

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Answer #1
GENERAL journal
Sr. No. Date Account Title and explanation Post Ref. Debit Credit
1 Cash $                       1,560
2 1/15/13         To Merchandise $                1,500
3          To Sales Tax Payable ($ 1,500 X 4% ) $                      60
Note: Sales of Merchandise amount = $ 1,500
Sales tax is always addition to value of merchandise
This is also collected by seller and paid to the government so sales tax payable is $ 60 (4% of $ 500)
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