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On July 15, Piper Co. sold $16,000 of merchandise (costing $8,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions. On November 3, the Milwaukee Bucks sold a six game pack of advance tickets for $480 cash. On November 20, the Bucks played the first game of the six game pack (this represented one-sixth of the advance ticket sales). Record the entries for the November 3 and November 20 transactions.

Required:
Record the entry for cash sales and its sales taxes.

Respuesta :

Tundexi

Answer:

Date      Account titles                   Debit     Credit

Jul-15    Cash                                $16,640

                    Sales revenue                          $16,000

                    Sales tax payable                    $640

                    ($16,000*4%)

Jul-15    Cost of goods sold           $8,000

                     Inventory                                 $8,000

Aug-01   Sales tax payable             $640

                      Cash                                       $640

Nov-03   Cash                                 $480

                      Unearned ticket revenue      $480

Nov-20  Unearned ticket revenue $80

              ($480*1/6)

                      Ticket revenue                       $80

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