Calibri 12 AA 2 Styles Styles Pane 4. J.B. Good, Inc., a wholesaler, sold mercha

Question

Calibri 12 AA 2 Styles Styles Pane 4. J.B. Good, Inc., a wholesaler, sold merchandise to a retailer which had properly supplied 3 it a resale certificate so that the retailer would not have to pay sales tax to J.B. Good, Inc. when it bought the merchandise. The sales tax rate is (see separate sheet). The resale certificate is used when the buyer intends to resell the merchandise, and when it actually does resell the merchandise, it charges the applicable sales tax to its customer(s). J.B. Good, Inc. sold merchandise on open account for a total price of (see 38 separate sheet). The merchandise had a cost (was carried in inventory at) (see separate 39 sheet). Make the entries that go on Good's books for the sale and for the relief from inventory 43 e 5 of 23 2278 Words English (US)

Explanation / Answer

4)

Journal Entry in the books of Good :

Debit Accounts Receivable $10598.16

Credit Sales revenue $9962.27

Credit Sales tax payable $635.89

(being the sales tax = 10598.16 * (6/100) = 635.89 made payable so that inventory is relieved)

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