Question

Ahlers Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $10,000 cash plus 4 percent sales tax. The clock had originally cost Ahlers $6,000. Assume Ahlers uses a perpetual inventory system.

[The following information applies to the questions displayed below. Ahlers Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $10,000 cash plus 4 percent sales tax. The clock had originally cost Ahlers $6,000. Assume Ahlers uses a perpetual inventory system. value: 1.00 points 2. Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 2 Record the sales revenue of $10,000 plus 4 percent sales tax. Note: Enter debits before credits. Transaction General Journal Debit Credit Record entry Clear entry View general journal

Answer 1

Journal entry :

Date	accounts & explanation	debit	credit
	Cash	10400
	Sales revenue		10000
	Sales tax payable (10000*4%)		4000
	(To record sales revenue)
	Cost of goods sold	6000
	Merchandise inventory		6000
	(To record cost of goods sold)