Question

The following transactions took place at Five Flags Amusement Park during May. Five Flags Amusement Park must charge 8 percent sales tax on all sales:
DATE TRANSACTIONS 2019
May 1 Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
15 Recorded cash sales, $5,800 plus 8 percent sales tax.
31 Received payment on account due from Bill Gomez for the sale on May 1.
Journal entry worksheet
1- Sold merchandise on account to Bill Gomez; issued Sales Slip 1015 for $1,200 plus 8 percent sales tax, terms n/30.
2- Recorded cash sales, $5,800 plus 8 percent sales tax.
3- Received payment on account due from Bill Gomez for the sale on May 1.

Answer 1

Answer:

the journal entries are made as follows;

Explanation:

May 1

A/R           Dr.$1,296

Sales        Cr.$1,200

Sales Tax payable Cr.$96

May 15

Cash   Dr.$6,264

Sales   Cr.$5,800

Sales Tax Payable Cr.$464

May 31

Cash   Dr.$1,296

A/R     Cr.$1,296