Question

Dextra Computing sells merchandise for $5,000 cash on September 30 (cost of merchandise is $3,000). Dextra collects 8% sales tax. Record the entry for the $5,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.

Record the cash sales and 8 % sales tax

Answer 1

Date General Journal Debit Credit

Sep 30 Cash $5,400

Sales $5,000

Sales taxes payable $400 ($5,000 * 8%)

Sep 30 Cost of goods sold $3,000

Merchandise inventory $3,000

Oct. 15 Sales taxes payable $400

Cash $400