Cardinal Company sells merchandise for $24,000 cash on March 31. The sales tax law requires Cardinal to collect 8.5% sales tax on every dollar of merchandise sold. Record the entry for the sale and its applicable sales tax.
What will be an ideal response?
| Cash……………………………………………………. | 26,040 |
| Sales Taxes Payable (24,000 * .085)..…………… | 2,040 |
| Sales……………………………………………… | 24,000 |
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