Dextra Computing sells merchandise for $10,000 cash on September 30 (cost of merchandise is $8,000). Dextra collects 9% sales tax. Record the entry for the $10,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.

1. Dr Cash $10,900

Cr Sales $10,000

Cr Sales Taxes Payable $900

2. Dr Cost of Goods Sold $8,000

Cr Merchandise Inventory $8,000

3. Dr Sales Taxes Payable $900

Cr Cash $900

Explanation:

1. Preparation of the journal entry to record the cash sale and 9% sales tax

Dr Cash $10,900

($10,000+$900)

Cr Sales $10,000

Cr Sales Taxes Payable $900

($10,000*9%)

(To Record the cash sale and 9% sales tax)

2. Preparation of the Journal entry to record the cost of September 30th sales

Dr Cost of Goods Sold $8,000

Cr Merchandise Inventory $8,000

(To Record the cost of September 30th sales)

Preparation of the journal entry to show Dextra sending the sales tax on this sale to the government on October 15

Dr Sales Taxes Payable $900

Cr Cash $900

($10,000*9%)

(Being the sales tax on the sale to the government on October 15)

answer; i believe the correct answer is (treasury bills);

answer; charters;