Sales taxes payable Date Account Titles and Explanation Debit Credit Mar. 16 SHO

Question

Sales taxes payable Date Account Titles and Explanation Debit Credit Mar. 16 SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS SHOW LIST OF ACCOUNTS

Brief Exercise 10-3

Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $10,165. All sales are subject to a 7% sales tax.

Compute sales taxes payable.
Sales taxes payable $ enter a dollar amount
Make the entry to record sales taxes payable and sales. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date Account Titles and Explanation Debit Credit Mar. 16 enter an account title to record sales taxes payable and sales on March 16 enter a debit amount enter a credit amount enter an account title to record sales taxes payable and sales on March 16 enter a debit amount enter a credit amount enter an account title to record sales taxes payable and sales on March 16 enter a debit amount enter a credit amount SHOW LIST OF ACCOUNTS

Explanation / Answer

Sales tax payable = 10165*7/107 = 665

Journal entry :

Date accounts & explanation debit credit Cash 10165     Sales 9500      Sales tax payable 665 (To record sales and sales tax payable)

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