Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include a credit to O Cash for $5100 O Sales for $5,355 O Sales for $5,100 O Sales Tax Payable for $255

Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject to a 5% state sales tax. The journal entry to record the sale would include a credit to O Cash for $5100 O Sales for $5,355 O Sales for $5,100 O Sales Tax Payable for $255

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 2CE: Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is...

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Question

Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject to a 5% state sales tax. The journal entry to record the
sale would include a credit to
O Cash for $5,100
Sales for $5,355
Sales for $5,100
O Sales Tax Payable for $255
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