Consider the following transactions of Sapphire ?Software: Mar. 31 Recorded cash

Question

Consider the following transactions of Sapphire ?Software: Mar. 31 Recorded cash sales of $170,000, plus sales tax of 9% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state. Journalize the transactions for the company. Ignore cost of goods sold. ?(Check your spelling carefully and do not abbreviate. Record debits? first, then credits. Select the explanation on the last line of the journal entry? table.) Mar. 31?: Recorded cash sales of $ 170 000?, plus sales tax of 9?% collected for the state of New Jersey. ?(Prepare a single compound entry for this? transaction.)

Explanation / Answer

Journal entries: Date Accounts title and explanations Debit $ Credit $ 31-Mar Cash Account Dr. 185,300        Sales revenue Account 170,000        Sales tax payable Account (170,000*9%) 15300 (For sales made for cash and sales tax collected to be payable to State) 6-Apr Sales tax payable Account Dr. 15300         Cash Account 15300 (for sales tax collected deposited in states treasury)

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