Question

Dextra Computing sells merchandise for $20,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires Dextra to collect 9% sales tax on every dollar of merchandise sold. Record the entry for the $20,000 sale and its applicable sales tax. Also record the entry that shows the payment of 9% tax on this sale to the state government on October 15. View transaction list Journal entry worksheet 2 3 Record the cash sales and 9% sales tax. Note: Enter debits before credits Date General Journal Debit Credit Sep 30 Record entry Clear entry View general Journal

Answer 1

Journal

September 30	Cash	21,800
	Sales		20,000
	Sales tax payable		1,800
September 30	Cost of goods sold	12,000
	Inventory		12,000
October 15	Sales tax payable	1,800
	Cash		1,800

Sales tax payable = Sales x Sales tax rate

= 20,000 x 9%

= $1,800

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