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

Business

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