Recording sales taxConsider the following transactions of Sapphire Software:Journalize the transactions for the company Ignore cost of goods sold. Mar. 31 Recorded cash sales of $230,000, plus sales tax of 7% collected for thestate of New Jersey.Apr. 6 Sent March sales tax to the state.

Date Account Titles and Explanations Debit Credit Mar. 31 Cash $246,100…

Answered: Mar. 31 Recorded cash sales of…

Mar. 31 Recorded cash sales of $230,000, plus sales tax of 7% collected for the state of New Jersey. Apr. 6 Sent March sales tax to the state.

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter21: Corporations: Taxes, Earnings, Distributions, And The Statement Of Retained Earnings

Section: Chapter Questions

Problem 1SEB

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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

Recording sales tax

Consider the following transactions of Sapphire Software:

Journalize the transactions for the company Ignore cost of goods sold.

Mar. 31 Recorded cash sales of $230,000, plus sales tax of 7% collected for the
state of New Jersey.
Apr. 6 Sent March sales tax to the state.

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