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    Roy194's Avatar
    Roy194 Posts: 1, Reputation: 1
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    #1

    May 4, 2012, 02:10 PM
    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?
    pready's Avatar
    pready Posts: 3,197, Reputation: 207
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    #2

    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
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