Question

Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). The sales tax law requires Dextra to collect 5% sales tax on every dollar of merchandise sold. Record the entry for the $6,000 sale and its applicable sales tax. Also record the entry that shows the remittance of the 5% tax on this sale to the state government on October 15.Record the cost of Sept. 30th sales in a journal entry workshetRecord the entry that shows the remittance of the 5% tax on this sale to the state government on October 15 in a journal entry worksheet

Answer 1

Answer:    

1.  Journal entry for the sales of merchandise

                              General Journal Entry

Date       Account Titles and Explanation           Debit        Credit

Sept 30  Cash ($6000 + $300)                            $6,300

               Sales                                                                         $6,000

               Sales Tax Payable($6000 * 5%)                              $300

               (To record the collection of sales and sales tax)

2.   Journal entry for the cost of merchandise sold

                              General Journal Entry

Date       Account Titles and Explanation           Debit        Credit

Sept 30.  Cost of goods sold                                $3,900

                Merchandise inventory                                          $3,900

       (To record the cost of merchandise sold by receiving cash)

       

3.  Journal entry for the cost of merchandise sold

                              General Journal Entry

Date       Account Titles and Explanation           Debit        Credit

Oct 15.   Sales Tax payable                                    $300

              Cash                                                                            $300

          (To record the payment of accrued sales tax to government)