Merchandise is sold on credit for $900 plus 5% sales tax. The entry in the sales journal will include a credit to Sales for

Name: Merchandise is sold on credit for $900 plus 5% sales tax. The entry in the sales journal will include a credit to Sales for
Brand: Quizplus
Rating: 4.8 (40 reviews)

Question

Quizplus · Accepted Answer

The sales journal entry for a sale on credit records the amount of the sale before tax, which is $900 in this case. The 5% sales tax is recorded separately and does not affect the credit to Sales.

Merchandise Is Sold on Credit for $900 Plus 5% Sales