Question

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

Answer 1

B. Sales for $3,456

Step-by-step 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