Question

D Question 28 5 pts For July, Olpin Wholesalers had sales revenue of $200,000. Of this sales amount, $90,000 were cash sales, and the remainder were on account. When making sales, Olpin is required to charge state sales tax at an 8% rate. Make the aggregate entry for Olpin to record sales and sales taxes for July, assuming the sales taxes have not yet been remitted to the state. HTML Editora BIVA - A. IX Exxo * VT 12pt Paragra Proctorio is sharing your screen, Stop sharing Hide

Answer 1

Date	Particulars	Debit Amount	Credit Amount
	Cash A/c Dr	90,000
Debtors A/c Dr	110,000
To Customer A/c		185,185
To Sales Tax Payable A/c		14,815
(Narration: Being sales made on cash & Credit to the customer)

Working: Total sales revenue = 200000 & when making sales he has to charge sales tax. It means total sales include sales Tax.

Therefore Gross sales = (200000-14815= 185185)

200000 X 8/108 = 185185