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tankabanditka [31]
3 years ago
13

Marigold Corp. Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $8,400. A

ll sales are subject to a 5% sales tax. Compute sales taxes payable. Sales taxes payable $ enter a dollar amount Make the entry to record sales taxes payable and sales. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Business
1 answer:
just olya [345]3 years ago
5 0

<u>Solution and Explanation:</u>

<u>The following calculation is made in order to find out the value of sales tax which is payable</u>

Sales including the sales tax = $8,400  

Sales tax rate = 5%  

Sales Tax [\$ 8400 / 105 \% \times 5 \%] = $400  

Sales [\$ 8400 / 105 \% \times 100 \%] = $8,000  

Sales Tax payable = $400  

<u>The following Journal Entry will be passed in the books of accounts</u>  

Date Account Title              Debit Credit

Mar 16 Cash                   $8,400  

     Sales                                    $8,000

   Sales Tax Payable                       $40

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