Question

2. Mark's store sold $1,000,000 of products in March 2019 to retail customers in San Diego. San Diego imposes an 8.0% sales tax. Customers returned $50,000 of items during March 2019. Big 4 paid the sales tax due for March on April 5. Show the entries in the T accounts below (ignore the allowance method of accounting for sales returns.)

Cash

Sales Revenue

Sales Tax Payable

Sales Tax Expense

Sales Returns

Accounts Receivable

Answer 1

Date Particular Amount Cash Date Particular Apr-05 Sales Tax Payable Amount $80,000 Date Particular Sales Revenue Amount Date Particular Amount Mar-19 Accounts Receivable $1,000,000 Date Particular Apr-05 Cash Sales Tax Payable Amount Date Particular $80,000 Mar-19 Sales Tax Expense Amount $80,000 Sales Tax Expense Amount Date Particular $80,000 Date Particular Mar-19 Sales Tax Payable Amount Sales Retutn Amount Date $50,000 Particular Date Particular Mar-19 Accounts Receivable Amount Date Particular Mar-19 Sales Accounts Receivable Amount Date Particular $1,000,000 Mar-19 Sales Return Amount $50,000

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