Question

Kathy's Corner Store has total cash sales for the month of $36,000 excluding sales taxes. If...

Kathy's Corner Store has total cash sales for the month of

$36,000

excluding sales taxes. If the sales tax rate is

66​%,

which journal entry is​ needed? (Ignore Cost of Goods​ Sold.)

Business   Accounting   
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Answer #1
Account titles and explanation Debit Credit
Cash $       59,760
Sales revenue $ 36,000
Sales tax payable $ 23,760
(To record sale revenue and sales tax liabilities)
Working:
Sales tax = Sales revenue * Sales tax rate
= $       36,000 * 66%
= $       23,760
Sales revenue $       36,000
Add sales tax payable $       23,760
Total Cash received $       59,760
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