Date Account Titles and Explanation Debit Credit SHOW LIST OF ACCOUNTS LINK TO T

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Account Titles and Explanation

Debit

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SHOW LIST OF ACCOUNTS

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Date

Account Titles and Explanation

Debit

Credit

In performing accounting services for small businesses, you encounter the following situations pertaining to cash sales.
1. Crane Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $28,500 and sales taxes $1,425. 2. Sunland Company does not segregate sales and sales taxes. Its register total for April 15 is $17,120, which includes a 7% sales tax.

Explanation / Answer

Journal Entry Date Accounts title and explanations Debit $ Credit $ For Crane Company: 10-Apr Cash Account Dr. 29925      Sales revenue Account 28,500      Sales tax payable 1425 For Sunland Company: 15-Apr Cash Account Dr. 17120     Sales revenue Account (17120/107*100) 16000      Sales tax payable Account (17120/107*7) 1120

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