Journal entry For June 26 AND 27 What account is credited and debited? June 26 A
ID: 2719887 • Letter: J
Question
Journal entry For June 26 AND 27
What account is credited and debited?
June 26
Accessory items were sold on account to customer Christine Nelson. All accessory items carry a markup of 100% on cost (50% on selling price). Calculate the total selling price and be sure to include the 8% sales tax (rounded to the nearest cent if necessary).
Merchandise listed on the sales invoice:
Stock Number
Item
Quantity
Net Cost Per Unit
KW001
JS BATTERY
3
$29.40
C0300
STAINLESS IMP. 900
2
$78.40
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June 27
A check was issued to the State Board of Equalization for the balance of the sales tax collected through the close of the work day on June 23. The Sales Tax Payable ledger card or the Check Figures for June 23, the end of week three, lists the correct balance of this account.
Stock Number
Item
Quantity
Net Cost Per Unit
KW001
JS BATTERY
3
$29.40
C0300
STAINLESS IMP. 900
2
$78.40
Explanation / Answer
KW001 , Cost Price 29.40$
Selling Price 58.8$
Tax - 4.704$
Net Selling Price : 63.504$
C0300 , Cost price 78.40$
Selling Price 156.80$
Tax , 8% - 12.544$
Net selling price : 169.344$
Total selling price
3x 63.504$ + 2x 169.344$
= 529.2$
Total tax payable - 39.2$
Profits - S.P - C.P - Tax payable
= 529.2 - 245 - 39.2
= 245$
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