Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $4,500 of cash sales that are subject to an 6% sales tax, what is the journal entry to record the cash sales

Debit Cash $4,770

Credit Sales $4,500

Credit Sales Taxes Payable 270

Explanation:

Preparation of the journal entry to record the cash sales for Cantrell Company

Debit Cash $4,770

Credit Sales $4,500

Credit Sales Taxes Payable 270

Explanation:

Since Cantrell Company is been required to receive and remit the sales taxes in which If Cantrell has $4,500 of cash sales that are subject to an 6% sales tax this means we have to Debit Cash $4,770, Credit Sales $4,500 and Credit Sales Taxes Payable 270.

The Sales Taxes Payable will be :

Sales × Sales Tax Rate

Sales Taxes Payable = $4,500 × 0.06= $270

( A Credit to Sales Taxes Payable)

The Cash Received will be:

Sales + Sales Taxes Payable

Cash Received = $4,500 + $270 = $4,770

( A Debit to Cash)

hi : ) i found this so i hope this !

"we first find value of tax in dollars.

the difference between the two prices   is: 23. 54 - 22 = 1.54

therefore the sales tax in dollars is 1.54

the tax % will be   (amount of tax / original cost price ) × 100

(1.54 / 22) × 100  → (0.07) × 100 =   7

so the tax rate is 7%

we can double check the answer.

7 % of 22   → (7/100) × 22 → 0.07 × 22 = 1.54

22 + 1.54 = 23.54"