Exercise $9-3$A $($Algo$)$ Recording sales tax LO $9-2$

Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is $6$ percent. Vail Book Mart engaged in the following transactions for Year $1.$ Sales tax of $6$ percent is collected on all sales.

Book sales, not including sales tax, for Year $1$ amounted to $$275,000$ cash.

Cash sales of miscellaneous items in Year $1$ were $$148,000,$ not including tax.

Cost of goods sold was $$209,000$ for the year.

Paid $$131,000$ in operating expenses for the year.

Paid the sales tax collected to the state agency.

Required

b$.$ Prepare the journal entries for the preceding transactions.

c$.$ What is Vail Book Mart$$s net income for the year?