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Question 1. On July 15, Longview Co. sold $25,000 of merchandise (costing $12,500) for cash. The sales tax rate is 7%. On August 1, Longview sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.
Sales 25000
Merchandise Cost 12500
Tax Rate 7%
Question 2. On November 3, the El Paso Hound Dogs sold a six game pack of advance tickets for $4200 cash. On November 20, the Dogs played the first game of the 8 game pack (this represented one-eight of the advance ticket sales). Record the entries for the November 3 and November 2 transactions.
Advanced Ticket Sales 4200
Total Games 8
Tickets Per game 525
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