Journalize the entries to record the following selected transactions: a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%

Journalize the entries to record the following selected transactions:

a. Sold $22,600 of merchandise on account, subject to a sales tax of 5%. The cost of the merchandise sold was $13,600.

b. Paid $51,668 to the state sales tax department for taxes collected.


Answer:

a.
 Accounts Receivable 23,730
Sales 22,600
Sales Tax Payable ($22,600 × 5%) 1,130
Cost of Merchandise Sold 13,600
Merchandise Inventory 13,600
b.
 Sales Tax Payable 51,668
Cash 51,668



What is the normal balance of the following accounts: (a) Cost of Merchandise Sold, (b) Delivery Expense, (c) Merchandise Inventory, (d) Sales, (e) Sales Discounts, (f) Sales Returns and Allowances, (g) Sales Tax Payable?


Answer:
a. debit
b. debit
c. debit
d. credit
e. debit
f. debit
g. credit