Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $256 b. Sales for $3,456 c. Cash for $3,200 d. Sales for $2,944

Question

Business

Riley Sloan

31 May, 03:32

Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $256 b. Sales for $3,456 c. Cash for $3,200 d. Sales for $2,944

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Answers (1)

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Grayson · Answer 1

B. Sales for $3,456

Explanation:

Sales can simply be defined as the activity of selling the merchandise inventory of a business at any given time.

Journal entry

Dr Account receivable $3,456

Cr Sales Revenue $3,200

Cr Sales tax payable $256

Sales revenue $3,200

Sales percentage 8%

Therefore sales tax payable = sales revenue * sales percentage

$3,200*8% = 256

$3200 + $256 = $3,456