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12 April, 07:38

Crane Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $23,000 and sales taxes $1,150. 2. Sunland Company does not segregate sales and sales taxes. Its register total for April 15 is $14,840, which includes a 6% sales tax. Prepare the entry to record the sales transactions and related taxes for Crane Company.

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  1. 12 April, 07:44
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    1. Crane Company enters sales and sales taxes separately on its cash register. On April 10, the register totals are sales $23,000 and sales taxes $1,150.

    Dr. Cr.

    Cash $24,150

    Sales $23,000

    Sales tax Payable $1,150

    2. Sunland Company does not segregate sales and sales taxes. Its register total for April 15 is $14,840, which includes a 6% sales tax.

    Dr. Cr.

    Cash $14,840

    Sales $14,000

    Sales tax Payable $840

    Working:

    Sales Tax = ($14,840 / 106) x 6 = $840

    Sales = $14,840 - $840 = $14,000
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