value: 1.80 points QS 9-2 Accounting for sales taxes LO C2 Dextra Computing sell

Question

value: 1.80 points QS 9-2 Accounting for sales taxes LO C2 Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). The sales tax law requires Dextra to collect 10% sales tax on every dollar of merchandise sold. Record the entry for the $16,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 10% tax on this sale to the state government on October 15. View transaction list Journal entry worksheet 2 Record the cash sales and 10% sales tax. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30 Record entry Clear entry View general journal

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit Sep 30 Cash 17600     Sales revenue 16000    Sales tax payable 1600 (To record sales) Sep 30 Cost of goods sold 11200     Merchandise inventory 11200 (To record cost of goods sold) Oct 15 Sales tax payable 1600     Cash 1600 (To record sale tax paid)

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