Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 10% sales tax. Record the entry for the $16,000 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.

Question

Business

Prancer

30 August, 23:30

Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 10% sales tax. Record the entry for the $16,000 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.

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Answers (1)

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Ashlyn Kline · Answer 1

See explanation section.

Explanation:

September 30, Cash Debit = 17,600

Sales Credit = 16,000

Sales taxes payable Credit = 1,600

Calculation: Sales taxes payable = 16,000 * 10% = 1,600

To record the sales by cash with a sales tax.

September 30, Cost of goods sold Debit = 11,200

Merchandise inventory Credit = 11,200

As the company uses perpetual inventory system, therefore, the company gave cost of goods sold journal.

October 15, Sales taxes payable Debit = 1,600

Cash Credit = 1,600

To record the cash payment of sales tax to government.