Cortex Technology operates retail stores throughout the? tri-state area. The? company's sales are subject to a 6?%

Question

Cortex Technology operates retail stores throughout the? tri-state area. The? company's sales are subject to a 6?% sales tax payable to the state and county government. At the end of the current? year, Cortex reported accounts receivable of $5,618,000 for credit? sales, which includes the sales value of the merchandise sold plus the sales taxes. a) Prepare the journal entry to record the sales taxes Cortex remitted to the state and county taxing jurisdictions.

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Journal Entries: Date Account Titles and Explanation Debit Credit Accounts Receivable 5618000 Sales Revenue (5618000/1.06) 5300000 Sales Tax Payable (5300000*6%) 318000 (Being entry made to record accounts receivables and sales tax payable on sale is 6%) Sales Tax 318000 Cash 318000 (Being entry made to record sales tax paid to local jurisdiction or authority at the rate of 6%)

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Cortex Technology operates retail stores throughout the? tri-state area

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Journal Entries:
Date	Account Titles and Explanation	Debit	Credit
	Accounts Receivable	5618000
	Sales Revenue (5618000/1.06)		5300000
	Sales Tax Payable (5300000*6%)		318000
	(Being entry made to record accounts receivables
	and sales tax payable on sale is 6%)

	Sales Tax	318000
	Cash		318000
	(Being entry made to record sales tax paid
	to local jurisdiction or authority at the rate of 6%)