Target Shoppers Inc. reported cash sales of $28,800 for the month of June. Sales taxes payable are recorded at the point of sale. a. Assume that sales are subject to a 6% sales tax. Record the sales entry. b. Now assume that the cash collected on sales includes the 6% sales tax. Record the sales entry. ● Note: Round
Target Shoppers Inc. reported cash sales of $28,800 for the month of June. Sales taxes payable are recorded at the point of sale. a. Assume that sales are subject to a 6% sales tax. Record the sales entry. b. Now assume that the cash collected on sales includes the 6% sales tax. Record the sales entry. ● Note: Round
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Target Shoppers Inc. reported cash sales of $28,800 for the month of June. Sales taxes payable are recorded at the point of sale.
a. Assume that sales are subject to a 6% sales tax. Record the sales entry.
b. Now assume that the cash collected on sales includes the 6% sales tax. Record the sales entry.
● Note: Round your answers to the nearest whole dollar.
| Account Name | Dr. | Cr. | |
|---|---|---|---|
| a. | |||
| To record the sale entry. | |||
| b. | |||
| To record the sale entry. |
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