Answer:
Credit sales $1,852 and credit sales tax payable $148
Explanation:
When a sale is made the sales of the business increases and so sales is credited while inventory goes down and is debited.
In this scenario a customer made a purchase of $2,000 so there is an increase in sales of the business.
However the business has agreed to pay the tax on the sale with sale amount and tax totalling $2,000.
2,000 = Sale amount + Sale amount (0.08)
2,000 = 1.8 (sale amount)
Sale amount = 2,000 ÷ 1.08 = 1,851.85 ~ $1,852
Sales tax = 2,000 - sales amount
Sales tax = 2,000 - 1,852 = $148
Sir we will Credit sales $1,852 and credit sales tax payable $148
