Question

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 remittance of the 3% tax on this sale to the state government on October 15.

Record the cash sales and 3% sales tax.
record the cost of sept. 30th sales.
record the entry that shows the remittance of the 3% tax on this sale to the state government on october 15.
please show the calculations as well.

Answer 1

Step-by-step explanation:

From the given information;

The Journal entries for Dextra Computing Merchandise can be computed as follows:

Date Account title Debit ($) Credit ($)

Sept 30 Sales Revenue 17000

Sept 30 Sales Tax Payable

(3% × 17000)= 0.03× 17000 510

Sept 30 Cash 17510

(To record the cash sales of merchandise)

Sept 30 Cost of goods sold 11900

Sept 30 Merchandise Inventory 11900

(To record the transfer of cost of merchandise

to cost of goods sold)

Oct 15 Sale Tax Payable

(3% × 17000)= 0.03× 17000 510

Cash 510

(To record the remittance of 3%

sales tax to the state government)