Question

On March 25, Osgood Company sold merchandise on account, $4,800 terms n/30. The applicable sales tax percentage is 7%. Journalize the transaction.

Answer 1

Dr Acount Receivable- Osgood co $4464

Cr Merchandise Inventory $4464

Step-by-step explanation:

Preparation of the journal entry

Based on the information given the appropriate journal entry for the transaction will be:

Dr Acount Receivable- Osgood co $4464

Cr Merchandise Inventory $4464

[$4800-(7%*$4800)]