Question

A cash register tape shows cash sales of $5,000 and sales taxes of $300. the journal entry to record this information is

Answer 1

The journal entry for the cash receipt and on that the sales tax is charged is as follows:

Step-by-step explanation:

Cash A/c.................................................Dr $5,300

To Sales RevenueA/c.............................Cr $5,000

To Sales Tax Payable A/c......................Cr $ 300

Working Note:

So, the total of cash received will be = Sales Amount + Amount of sales tax payable

= $5,000 + $300

= $5,300