Bargain Surplus made cash sales during the month of October of $375,000. The sales are subject to a 6% sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the sale transactions?

Debit Accounts Receivable for $375,000.

Credit Sales Taxes Payable for $21,226.

Credit Sales Taxes Payable for $22,500.

Credit Sales Revenue for $347,483.

Question

Derrick Boyle

Business

14 June, 07:29

Bargain Surplus made cash sales during the month of October of $375,000. The sales are subject to a 6% sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the sale transactions?

Debit Accounts Receivable for $375,000.

Credit Sales Taxes Payable for $21,226.

Credit Sales Taxes Payable for $22,500.

Credit Sales Revenue for $347,483.

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Answers (1)

Know the Answer?

Amira Tran · Answer 1

Answer: The correct answer is "Credit Sales Taxes Payable for $22,500."

Explanation: To correctly reflect the sale transaction, we must take into account the generation of a 6% tax liability as a result of the sale.

375000 x 0,06 = $22500 tax.

So "Credit Sales Taxes Payable for $22,500" would be included in summary journal entry.