Journalize the entries to record the following selected transactions: (a) Sold $900 of merchandise on account, subject to 7% sales tax. The cost of the merchandise sold was $510. (b) Paid $436 to the state sales tax department for taxes collected.

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Journalize the entries to record the following selected transactions:

(a) Sold $900 of merchandise on account, subject to 7% sales tax.  The cost of the merchandise sold was $510.
(b) Paid $436 to the state sales tax department for taxes collected.
Darshita Changed status to publish February 17, 2020
0

Answer:

No: Detail and description Debit $ Credit $
(a) Accounts Receivable 963
  Sales 900
  Sales Tax Payable 63
Cost of Merchandise Sold 510
  Merchandise Inventory 510
(b) Sales Tax Payable 436
  Cash 436
Darshita Changed status to publish February 17, 2020

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