Question

Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 9% sales tax. Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.View transaction list Journal entry worksheet < 1 2 3 >Record the cash sales and 7% sales tax. Note: Enter debits before credits. Date General Journal Debit Credit Sep 30 Record entry Clear entry View general journal

Answer 1

Answer:

1. Dr Cash $17,440

Cr Sales $16,000

Cr Sales Taxes Payable $1,440

2. Dr Cost of Goods Sold $11,200

Cr Merchandise Inventory $11,200

3. Dr Sales Taxes Payable $1,440

Cr Cash $1,440

Explanation:

1. Preparation of the journal entry to Record the cash sale and 9% sales tax

Dr Cash $17,440

(16,000 + 1,440)

Cr Sales $16,000

Cr Sales Taxes Payable $1,440

(16,000 x 9%)

2. Preparation of the journal entry to Record the cost of September 30th sales

Dr Cost of Goods Sold $11,200

Cr Merchandise Inventory $11,200

3. Preparation of the journal entry to Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15

Dr Sales Taxes Payable $1,440

Cr Cash $1,440

(16,000 x 9%)