On July 5. Fawn Company recorded sales of merchandise inventory on account, $65,000. The sales...
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On July 5. Fawn Company recorded sales of merchandise inventory on account, $65,000. The sales were subject to sales tax of 10%. On August 15, Fawn Company paid the sales tax owed to the state from the July 5 transaction. Requirements 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. 2. Joumalize the transaction to record the payment of sales tax to the state on August 15. Requirement 1. Journalize the transaction to record the sale on July 5. Ignore cost of goods sold. (Record debits first, then credits. Select the explanation on the last line of the journal entry table. Prepare a single compound entry for this transaction.) Date Accounts and Explanation Debit Credit Jul. 5 Requirement 2. Journalize the transaction to record the payment of sales tax to the state on August 15. (Record debits first, then credits. Select the explanation on the last line of the journal entry table.) Date Accounts and Explanation Debit Credit Aug. 15
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