Sales Taxes Payable. Eaton Technology operates retail stores throughout the Instate area The company’s sales are subject to a 7% sales tax payable to the state and county government At the end of the current year, Eaton reported accounts receivable of $5,617,500 for credit sales, which includes the sales value of the merchandise sold plus the sales taxes.
Required
- a. Prepare the
journal entry required to record the sales for the current year The company uses a periodic inventory system - b. Prepare the journal entry to record the sales taxes Eaton remitted to the state and county taxing jurisdictions.
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