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.

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