The College Book Mart sells books and other supplies to students in a state where the sales tax rate is 8 percent. The College Book Mart engaged in the following transactions for 2011. Sales tax of 8 percent is collected on all sales.

1. Book sales, not including sales tax, for 2011 amounted to \(\$ 320,000\) cash.

2. Cash sales of miscellaneous items in 2011 were \(\$ 80,000\), not including tax.

3. Cost of goods sold was \(\$ 190,000\) for the year.

4. Paid \(\$ 150,000\) in operating expenses for the year.

5. Paid the sales tax collected to the state agency.

Required

a. What is the total amount of sales tax the College Book Mart collected and paid for the year?

b. Prepare the journal entries for the above transactions.

c. What is the College Book Mart's net income for the year?