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7 October, 12:52

Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $256 b. Sales for $3,456 c. Cash for $3,200 d. Sales for $2,944

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  1. 7 October, 12:57
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    B. Sales for $3,456

    Explanation:

    Sales can simply be defined as the activity of selling the merchandise inventory of a business at any given time.

    Journal entry

    Dr Account receivable $3,456

    Cr Sales Revenue $3,200

    Cr Sales tax payable $256

    Sales revenue $3,200

    Sales percentage 8%

    Therefore sales tax payable = sales revenue * sales percentage

    $3,200*8% = 256

    $3200 + $256 = $3,456
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Home » Business » Merchandise is sold for cash. The selling price of the merchandise is $3,200 and the sale is subject to a 8% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $256 b. Sales for $3,456 c.
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