On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is 4%. On August 1, Piper sent the sales tax collected from the sale to the government. Record entries for the July 15 and August 1 transactions.

15 July Debit Bank $10,000; Credit Sales revenue $9,600 and Credit Sales tax payable $400

15 July Debit Cost of goods sold $5,000; Credit Inventory $5,000

1 August Debit Sales tax payable $400; Credit Bank $400

Explanation:

15 July Debit Bank $10,000; Credit Sales revenue $9,600 and Credit Sales tax payable $400

15 July Debit Cost of goods sold $5,000; Credit Inventory $5,000

1 August Debit Sales tax payable $400; Credit Bank $400

The sales tax expense of $400 ($10,000 * 4%) is a liability to the company as it has to pay it over to government thus it cannot be recorded as sales revenue income. At the date of sale we recognize a sales tax payable liability of the amount that we would have to pay over to the government for that particular sale

answer; i believe the correct answer is energy star;

the answer would be voluntary exchange -

"the act of buyers and sellers freely and willingly engaging in market transactions. moreover, transactions are made in such a way that both the buyer and the seller are better off after the exchange than before it occurred."

hope this : )

-shy