Dextra Computing sells merchandise for $7,000 cash on September 30 (cost of merc

Question

Dextra Computing sells merchandise for $7,000 cash on September 30 (cost of merchandise is $5,600). The sales tax law requires Dextra to collect 6% sales tax on every dollar of merchandise sold. Record the entry for the $7,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 6% tax on this sale to the state government on October 15. View transaction list Journal entry worksheet 3 Record the cash sales and 6% sales tax. Note: Enter debits before credits. DebitCredit Date General Journal Sep 30 View general Journal Record entry Clear entry

Explanation / Answer

Date Details Debit Credit Sep - 30 Cash account 7420 Sales revenue account 7000 Sales tax liability account 420 Sep-30 Cost of goods sold 5600 Merchandise Inventory 5600 Oct-15 Sales tax liability account 420 cash 420

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