Exercise $9-4$A $($Algo$)$ Recognizing sales tax payable LO $9-2$

The following selected transactions apply to Topeca Supply for November and December, Year $1.$ November was the first month of operations. Sales tax is collected at the time of sale but is not paid to the state sales tax agency until the following month.

Cash sales for November, Year $1,$ were $$168,000$ plus sales tax of $9$ percent.

Topeca Supply paid the November sales tax to the state agency on December $10,$ Year $1.$

Cash sales for December, Year $1,$ were $$200,000$ plus sales tax of $9$ percent.

Required

a$.$ Record the preceding transactions in general journal form.

b$.$ Use a horizontal financial statements model to show how each event affects the balance sheet, income statement, and statement of cash flows. More specifically, record the amounts of the events into the model. Also, in the Statement of Cash Flows column, classify the cash flows as operating activities $($OA$),$ investing activities $($IA$),$ or financing activities $($FA$).$

c$.$ What was the total amount of sales tax paid in Year $1?$

d$.$ What was the total amount of sales tax collected in Year $1?$

e$.$ What amount of sales tax expense will be reported on the Year $1$ income statement?

Complete this question by entering your answers in the tabs below.

Record the preceding transactions in general journal form.

Note: If no entry is required for a transaction or event, select $"$No journal entry required" in the first account field.