Brief Exercise 10-3 Your answer is partially correct. Try again. Greenspan Suppl

Question

Brief Exercise 10-3 Your answer is partially correct. Try again. Greenspan Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $17,820. All sales are subject to a 8% sales tax Compute sales taxes payable. Sales taxes payable 820 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 Cash 17820 sales 17000 Sales Taxes Payable 820 Click if you would like to Show Work for this question: Open Show Work

Explanation / Answer

Sales net of tax = 17820 / 1.08 = 16500

Sales tax = 17820 - 16500 = 1320

Sales Journal:

Cash A/c Dr 17820

To Sales A/c 16500

To Sales Tax Payable A/c 1320

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