Ask Me Help Desk - Sold merchandise for cash, $4,840, plus tax of $242.

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- - Sold merchandise for cash, $4,840, plus tax of $242. (https://www.askmehelpdesk.com/showthread.php?t=657290)

Sold merchandise for cash, $4,840, plus tax of $242.

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?

Debit Cash for the total amount received
Credit Merchandise Inventory for 4,840
Credit Sales Taxes Payable (or other appropriate account) for 242

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