Question: Recording sales tax On July 5, Fawn Company recorded sales of merchandise inventory on account, $15,000. The sales were subject to sales tax of 6%. On August 15, Fawn Company paid $300 of sales tax to the state.
Requirements: 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold.
2. Journalize the transaction to record the payment of sales tax to the state.