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Dextra Computing sells merchandise for $20,000 cash on September 30 (cost of merchandise is $12,000). The sales tax law requires Dextra to collect 9% sales tax on every dollar of merchandise sold. Record the entry for the $20,000 sale and its applicable sales tax. Also record the entry that shows the payment of the 9% tax on this sale to the state government on October 15.

User Ali Samawi
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Answer and Explanation:

According to the scenario,journal entry of the given data are as follow:-

Journal Entry

30 Sept Cash A/c Dr. $21,800

To Sales A/c $20,000

To Sales tax payable A/c $1,800 (20,000 × 9%)

( Being cash sales is recorded)

30 Sept Cost of goods sold A/c Dr. $12,000

To Inventory A/c $12,000

( Being September 30th sale cost is recorded)

15 Oct Sales tax payable A/c Dr. $1,800

To Cash A/c $1,800

( Being payment of tax is recorded)

User Dols
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