Instructions Journal Journalize the entries to record the fo

Instructions Journal Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. Journalize the entries to record the selected March transactions. Refer to the Chart of Accounts for exact wording of ac Sold $62,800 of merchandise orn JOURNAL ar. account, subject to a sales tax of 5%. The cost of the merchandise sold was $37,500. Paid $39,650 to the state sales tax department for taxes collected. DATE DESCRIPTION POST. REF DEBIT 23

Solution

Date General Journal Debit Credit Mar. 1 Accounts Receivable $65,940 Sales $62,800 Sales Tax Payable($62,800 x 5%) $3,140 Mar. 1 Cost of Merchandise Sold $37,500 Merchandise Inventory $37,500 Mar. 23 Sales Tax Payable $39,650 Cash $39,650