Smith Company sold merchandise for $3,000 cash. Assume the event is subject to a state sales tax
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Smith Company sold merchandise for $3,000 cash. Assume the event is subject to a state sales tax of 9%. Which of the following journal entries would be required to record the sales event? (Ignore any effects associated with the recognition of cost of goods sold.) |
| Account Titles | Debit | Credit |
| Cash | 3,270 | |
| Sales Revenue | 3,270 |
| Account Titles | Debit | Credit |
| Cash | 3,000 | |
| Sales Tax Expense | 270 | |
| Sales Revenue | 3,270 |
| Account Titles | Debit | Credit |
| Cash | 3,000 | |
| Sales Tax Payable | 270 | |
| Sales Revenue | 2,730 |
| Account Titles | Debit | Credit |
| Cash | 3,270 | |
| Sales Tax Payable | 270 | |
| Sales Revenue | 3,000 |
Expert Answer:
Related Book For 
Financial Accounting
ISBN: 978-1259103285
5th Canadian edition
Authors: Robert Libby, Patricia Libby, Daniel Short, George Kanaan, M
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