On July 5,BrennerCompany recorded sales of merchandise inventory on account,$25,000.The sales were subject to sales tax of10%.On August 15,BrennerCompany paid the sales tax owed to the state from the July 5 transaction. Requirements1.Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.2.Journalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.

Sales tax is levied on the merchandise sold. Sales tax is collected from the buyer and is paid to…

Answered: On July 5, Brenner Company recorded…

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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Question

On July 5,

Brenner

Company recorded sales of merchandise inventory on account,

$25,000.

The sales were subject to sales tax of

10%.

On August 15,

Brenner

Company paid the sales tax owed to the state from the July 5 transaction.

Requirements

1.	Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.
2.	Journalize the transaction to record the payment of sales tax to the state on August 15.

Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.

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