Question recording sales tax on july 5 fawn company, Ask an Expert

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Question: Recording sales tax On July 5, Fawn Company recorded sales of merchandise inventory on account, $15,000. The sales were subject to sales tax of 6%. On August 15, Fawn Company paid $300 of sales tax to the state.

Requirements: 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.

2. Journalize the transaction to record the payment of sales tax to the state.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M92648015

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