13. On August 31, Home Depot sold materials for $6,000 cash that is subject to a 5% sales tax. Home Depot is required by law to collect and send sales taxes to the state. On December 31, Home Depot paid the taxes collected over to the IRS. What is the journal entry to record the cash sales?

13. On August 31, Home Depot sold materials for $6,000 cash that is subject to a 5% sales tax. Home Depot is required by law to collect and send sales taxes to the state. On December 31, Home Depot paid the taxes collected over to the IRS. What is the journal entry to record the cash sales?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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13. On August 31, Home Depot sold materials for $6,000 cash that is subject to a 5% sales tax. Home
Depot is required by law to collect and send sales taxes to the state. On December 31,
Home Depot paid the taxes collected over to the IRS. What is the journal entry to record
the cash sales?

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