Very Bouys Inc. had cash sales of $650,000 during the month of December and collected the...

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Very Bouys Inc. had cash sales of $650,000 during the month of December and collected the 8% sales tax on these sales required by the province in which Very Bouys operates. Very Bouys must remit the sales tax to the province. Required: Prepare all necessary journal entries to account for the collection and payment of the sales tax assuming Very Bouys maintains a separate sales tax account. Very Bouys Inc. had cash sales of $650,000 during the month of December and collected the 8% sales tax on these sales required by the province in which Very Bouys operates. Very Bouys must remit the sales tax to the province. Required: Prepare all necessary journal entries to account for the collection and payment of the sales tax assuming Very Bouys maintains a separate sales tax account.

Answer rating: 100% (QA)

To account for the collection and payment of the sales tax the following journal entries nee... View the full answer