Kool's Stores made cash sales during the month of May of $79,000. The sales are subject to a 7% sales tax that was also collected. Which of the following would be included in the summary journal entry to reflect the May sales transactions?

Question

Quizplus · Accepted Answer

The sales tax collected is 7% of $79,000, which is $5,530. This amount should be credited to Sales Tax Payable to reflect the liability to the tax authority.

Kool's Stores Made Cash Sales During the Month of May