On July 5, Family Company recorded sales of merchandise rientory on account, 820

Question

On July 5, Family Company recorded sales of merchandise rientory on account, 820,000. The sales were subject to sales tax of 3%, On August 15. Family Company paid the sales tax owed to the state from the July 5transaction Requirements 1· Journalize the transaction to record the sale on July 5, Ignore cost of goods sold. 2- Journalize the transaction to record the payment of sales tax to the state on August 15. (Record debts nrst then credits Select the explanation on the last Requirement 1·Journal ze the transaction to record the sale on July 5 Ignore cost or goods sol line of the journal entry table. Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Jul. 5

Explanation / Answer

Journal entry :

Date accounts & explanation debit credit July 5 Cash 20600     Sales 20000      Sales tax payable (20000*3/100) 600 (To record Sales) Aug 15 Sales tax payable 600      Cash 600 (To record sales tax paid)

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