6) On June 4rd Chandler & Monica Grocery Store collected sales of $5,000 and sales taxes of $200. What is the journal entry that Chandler & Monica Grocery Store needs to record for this activity? (You may or may not need all rows of this textbox)

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Business

Kimberly Vaughan

13 June, 13:47

6) On June 4rd Chandler & Monica Grocery Store collected sales of $5,000 and sales taxes of $200. What is the journal entry that Chandler & Monica Grocery Store needs to record for this activity? (You may or may not need all rows of this textbox)

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Rolando Pace · Answer 1

The journal entry is shown below:

Cash A/c Dr $5,200

To Sales revenue A/c $5,000

To Sales tax payable A/c $200

(Being the cash is collected in respect of sales and sales tax)

Since the cash is collected so we debited the cash accounts and the sale is made. Along with it, the sale tax is also collected so these two accounts are credited.