Required information

M$10-2($Algo$)$ Recording Sales and State Tax $[$LO $10-2]$

$[$The following information applies to the questions displayed below.$]$

Grandpa Clocks, Incorporated $($GCI$),$ is a retailer of wall, mantle, and grandfather clocks. Assume GCl sells a grandfather

clock for $$13,000$ cash plus $5$ percent sales tax. The clock had originally cost $GCl$$$9,000.$ Assume $GCl$ uses a perpetual

inventory system.

M$10-2($Algo$)$ Part $2$

Prepare the journal entries related for the above transactions. $($If no entry is required for a transaction$/$event$,$ select $"$No Journal

Entry Required" in the first account field.$)$

Journal entry worksheet

A

B

Record the sales revenue of $$13,000$ plus $5$ percent sales tax.

Note: Enter debits before credits.