J.B. Good, Inc., a wholesaler, sold merchandise to a retailer which had properly supplied it a resale certificate so that the retailer would not have to pay sales tax to J.B. Good, Inc. when it bought the merchandise. The sales tax rate is 6. The resale certificate is used when the buyer intends to resell the merchandise, and when it actually does resell the merchandise, it charges the applicable sales tax to its customer(s). J.B. Good, Inc. sold merchandise on open account for a total price of $10000). The merchandise had a cost (was carried in inventory at)$ 6.500. Make the entries that go on Good’s books for the sale and for the relief from inventory.

Answer rating: 100% (QA)

Journal Entries in the Goods books for the sale and relief from inventory SNo Pa... View the full answer