Question

The balances of certain accounts of Brittany Corporation on April 30, 2019, were as follows: Sales $ 220,000 Sales Returns and Allowances $ 2,000 The firm’s net sales are subject to a 6 percent sales tax. Prepare the general journal entry to record payment of the sales tax payable on April 30, 2019.

Answer 1

Answer:

Sales tax = (Sales - Returns and Allowances ) * Sales tax rate

= (220,000 - 2,000) * 6%

= $13,080

April 30  DR Sales Tax Payable                                    $13,080

                     CR Cash                                                                    $13,080

              (To record payment of Sales tax payable)