Question

Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man, who pays in cash. The sale is subject to a 9.75 percent sales tax. Prepare the revenue portion of the February 13 journal entry for the jewelry store by selecting the account names and dollar amounts from the drop-down menus.

Answer 1

Answer:

Date      Account Title         Debit        Credit

Feb 13    Cash                 $10,975  

                  Sales                                  $10,000

            Sales Tax Payable          $975

             (10000 * 9.75%)