Question

Waterway Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $34,100. All sales are subject to a 10% sales tax.

Compute sales taxes payable. Sales taxes payable $ SHOW LIST OF ACCOUNTS LINK TO TEXT

Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit Mar. 16

Answer 1

Answer

· Requirements

A	Sales + Sales Tax Payable	$34,100
B = A/110%	Sales amount	$31,000
C = B x 10%	Sales Tax Payable	$3,100	Answer

Account titles	Debit	Credit
Cash	$34,100
Sales Revenue		$31,000
Sales Tax Payable		$3,100