a. Sold $22,500 of merchandise on account, terms n/30, subject to a sales tax of 6%. The cost of the merchandise sold was $13,500. Balance Sheet Assets Accounts Receivable: + Inventory Liabilities Sales Tax Payable Stockholders' Equity + Retained Earnings 21,150 X -13,500 V Statement of Cash Flows Income Statement No effect 0 Sales Cost of goods sold Gross profit b. Paid sales tax to the state sales tax department for taxes collected on the preceding sale. Balance Sheet Assets Liabilities +Stockholders' Equity Cash +No Effect - Sales Tax Payable No Effect -22,500 X 0 13,500 X 0 Statement of Cash Flows Income Statement Operating Check My Work Cost of merchandise sold Gross profit Sales No effect -13,500 V