Kay Sadia sold merchandise for $15,200 subject to a 7% sales tax. The entry in the sales journal will include a debit to Accounts Receivable for

Question

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The sales tax is 7% of the sale, which is $1,064 ($15,200 x 0.07). Therefore, the total amount Kay Sadia will receive is $16,264 ($15,200 + $1,064). This means that the Accounts Receivable account will be credited for $16,264, so the corresponding debit will also be $16,264.

Kay Sadia Sold Merchandise for $15,200 Subject to a 7