Question

Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $8,000 of cash sales that are subjected to an 8% sales tax, what is the journal entry to record the cash sales? Debit cash $8, 640; credit Sales $8,000; credit taxes Payable $640. Debit Sales taxes Payable $640; debit Cash $7, 360; credit Sales $8,000. Debit cash $8,000; credit Sales $8,000; and record the taxes when paid. Debit Accounts Receivable $8, 640; credit Sales $8,000; credit Sales Taxes Payable $640. Debit Cash $8,000; credit Sales $7, 360; credit Sales Taxes Payable $640.

Place New Order
It's Free, Fast & Safe

"Looking for a Similar Assignment? Order now and Get a Discount!