Question

ournalizing Sales Transactions

Enter the following transactions in a sales journal. Use a 6% sales tax rate.

May 1	Sold merchandise on account to J. Adams, $1,800, plus sales tax. Sale No. 488.
4	Sold merchandise on account to B. Clark, $1,800, plus sales tax. Sale No. 489.
8	Sold merchandise on account to A. Duck, $1,500, plus sales tax. Sale No. 490.
11	Sold merchandise on account to E. Hill, $1,950, plus sales tax. Sale No. 491.

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Answer 1

Step 1 SALES JOURNAL

	Date	Sale No.	To whom Sold	Post ref	Account Receivable Debit	Sales credit	Sales tax payable credit
1	May 1	488	J. Adams		$1,908	$1,800	$108*
2	May 4	489	B. Clark		$1,980	$1,800	$108**
3	May 8	490	A. Duck		$1,590	$1,500	$90***
4	May 11	491	E. Hill		$2,067	$1,950	$117****

$$$$

Step 2 Workings - Calculation of Sales tax

*1,800 x 6% = $108

** 1,800 x6% = $108

*** 1,500x 6% = $90

**** 1,950 x6% = $117