Question

Dextra Computing sells merchandise for $15,000 cash on September 30 (cost of merchandise is $9,000). Dextra collects 4% sales tax. Record the entry for the $15,000 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

Journal

Date	Account Title and Explanation	Debit	Credit
Sept 30	Cash	15,600
	Sales		15,000
	Sales tax payable		600
	(To record sale of inventory)
Sept 30	Cost of goods sold	9,000
	Inventory		9,000
	(To record cost of goods sold)
Oct 15	Sales tax payable	600
	Cash		600
	(To record payment of sales tax payable)

Sales tax payable = Sales x Sales tax rate

= 15,000 x 4%

= $600