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.

Answer 1

See journal entries under the explanation below:

Step-by-step explanation:

The journal entries will look as follows:

Dextra Computing

Journal Entries

Date Particulars Debit ($) Credit ($)

Sep 30 Cash 17.440

Sales 16,000

Sales Taxes Payable ($16,000 * 9%) 1,440

(To record the cash sale and 9% sales tax)

Cost of Goods Sold 11,200

Merchandise Inventory 11,200

(To record the cost of sales.)

Oct 15 Sales Taxes Payable ($16,000 * 9%) 1,440

Cash 1,440

(To record sending sales tax to the government.)