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View Full Version : Sold merchandise for cash, $4,840, plus tax of $242.

Roy194
May 4, 2012, 02:10 PM
I need help to put this in the general journal. I'm not sure how to document the taxes. Do I document it as merchandise inventory or sales?
pready
May 5, 2012, 06:36 PM
Debit Cash for the total amount received
Credit Merchandise Inventory for 4,840
Credit Sales Taxes Payable (or other appropriate account) for 242