Mason Company makes sales on which an 6% sales tax is assessed. The following summary transactions were made during 2014: a.Cash sales of $900,000, excluding sales taxes.
b.Credit sales of $2,150,000, including sales taxes.
c.Sales taxes of $213,500 were paid to the state.
Required:
Prepare journal entries to record the preceding transactions. (Round to the nearest whole number.)

Question

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The Answer of Mason Company makes sales on which an 6% sales tax is assessed. The following summary transactions were made during 2014: a.Cash sales of $900,000, excluding sales taxes.
b.Credit sales of $2,150,000, including sales taxes.
c.Sales taxes of $213,500 were paid to the state.
Required:
Prepare journal entries to record the preceding transactions. (Round to the nearest whole number.)

Mason Company Makes Sales on Which an 6% Sales Tax