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30 June, 22:47

Dextra Computing sells merchandise for $17,000 cash on September 30 (cost of merchandise is $11,900). The sales tax law requires Dextra to collect 3% sales tax on every dollar of merchandise sold. Record the entry for the $17,000 sale and its applicable sales tax. Also record the entry that shows the payment of the 3% tax on this sale to the state government on October 15.

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Answers (1)
  1. 1 July, 01:10
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    Journal entries

    Explanation:

    1. Cash $17,510

    To Sales revenue $17,000

    To Sales tax payable $510 ($17,000 * 3%)

    (Being the sale is recorded)

    2. Cost of goods sold $11,900

    To Merchandise inventory $11,900

    (Being the cost of merchandise is recorded)

    3. Sales tax payable $510

    To Cash $510

    (Being the payment is recorded)
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Home » Business » Dextra Computing sells merchandise for $17,000 cash on September 30 (cost of merchandise is $11,900). The sales tax law requires Dextra to collect 3% sales tax on every dollar of merchandise sold.
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