a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $13,600.
b. Paid $51,668 to the state sales tax department for taxes collected.
Answer:
a.
Accounts Receivable 23,730
Sales 22,600
Sales Tax Payable ($22,600 × 5%) 1,130
Cost of Merchandise Sold 13,600
Merchandise Inventory 13,600
b.
Sales Tax Payable 51,668
Cash 51,668