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Becah's Boot Co. had sales of merchandise of $10,000 in cash, and sales on account totaled $24,600 on January 30th.

All sales are subject to an 7% sales tax.

Becah's Boot Co. had a balance of $300 in its Sales Tax Payable account at the start of the period.

On February 15th., Becah's Boot Co. paid $1,780 of sales tax to the state.

Journalize the transaction to record the sale of June 5. Ignore cost of goods sold.

Also, journalize the transaction for the payment of taxes to the state.

Journal
DateDescriptionDebitCredit
January 30
January 30
January 30
January 30
February 15
February 15

Compute the balance of the Sales Tax Payable account after the payment of February 15th.

Sales Tax Payable
DebitCredit
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