Question 4 (of 5) save & Exit Submn 20.00 points Dextra Computing sells merchand

Question

Question 4 (of 5) save & Exit Submn 20.00 points Dextra Computing sells merchandise for $4,000 cash on September 30 (cost of merchandise is $2,400) The sales tax law requires Dextra to collect 8% sales tax on every dollar of merchandise sold Record the entry for the S4000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 8% tax on this sale to the state government on October 15 View transaction list Journal entry worksheet Record the cash sales and 8% sales tax. Note: Enter debits before credits. Date General Journal Debit Cr Credit Sep 30 [Cash 4,320 4,000 Sales taxes payable 320 Record entry Clear entry View general journal DX

Explanation / Answer

Answer

Date Particulars Dr $ Cr $ 30 sept Cash 4320 Sales 4000 Sales tax payable (4000*8%) 320 (Being record cash sales and sales tax) 30 sept Cost of goods sold $2400 merchandise inventory $2400 (Being transfer to the finishing deptt.) 15 oct. Sales tax payable 320 Cash 320 (Being sales tax paid to state govt. )

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