Answer:
1. Dr Cash $10,900
Cr Sales $10,000
Cr Sales Taxes Payable $900
2. Dr Cost of Goods Sold $8,000
Cr Merchandise Inventory $8,000
3. Dr Sales Taxes Payable $900
Cr Cash $900
Explanation:
1. Preparation of the journal entry to record the cash sale and 9% sales tax
Dr Cash $10,900
($10,000+$900)
Cr Sales $10,000
Cr Sales Taxes Payable $900
($10,000*9%)
(To Record the cash sale and 9% sales tax)
2. Preparation of the Journal entry to record the cost of September 30th sales
Dr Cost of Goods Sold $8,000
Cr Merchandise Inventory $8,000
(To Record the cost of September 30th sales)
Preparation of the journal entry to show Dextra sending the sales tax on this sale to the government on October 15
Dr Sales Taxes Payable $900
Cr Cash $900
($10,000*9%)
(Being the sales tax on the sale to the government on October 15)
