During december, far west services makes a $1,200 credit sale. the state sales tax rate is 6% and the local sales tax rate is 2.5%. (note: the sales tax amount is in addition to the credit sale amount.) record sales and sales tax payable. (if no entry is required for a particular transaction/event, select "no journal entry required" in the first account field.)

Explanation:

The journal entry is shown below:

Accounts receivable A/c Dr $1,302

       To Sales A/c $1,200

       To Sales tax payable $102

(Being sales and sales tax payable is recorded)

The computation of the sales tax payable is shown below:

= Credit sale × state sales tax rate + credit sale × local sales tax rate

= $1,200 × 6% + 1,200 × 2.5%

= $72 + $30

= $102

the answer is i don't know

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