On August 10, Johnson Company recorded sales of merchandise inventory on account, $4,400. The sales were subject to sales tax of 7%. The company uses the perpetual inventory system. On September 30,

Johnson Company paid $ 583 of sales tax to the state.

1.	Journalize the transaction to record the sale on August 10. Ignore cost of goods sold.
2.	Journalize the transaction to record the payment of sales tax to the state.

(Record debits first, then credits. Select the explanation on the last line of the journal entry table.)

1. Journalize the transaction to record the sale on August 10. Ignore cost of goods sold.

Date	Accounts and Explanation	Debit	Credit
Aug. 10	Accounts Receivable	4,708
	Sales Revenue		4,400
	Sales Tax Payable		308
	To record sales of merchandise inventory and the related sales tax.

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

Date	Accounts and Explanation	Debit	Credit
Sep. 30