Answer:
Step-by-step explanation:
Sales revenue x (100%+sales tax rate) = total sales including tax
sales revenue x 1.085 (100% + 8.5%) = 78120
sales revenue = 78120/1.085
sales revenue = 72000
total sales including tax - sales revenue = sales tax
78120 = 72000 = 6120
Journal entry:
cash. 78120
Sales revenue. 72000
Sales tax payable. 6120
