Exercise 9-3A Recording sales tax LO 9-2 Vail Book Mart sells books and other supplies to students in a state where the sales tax rate is 7 percent. Vail Book Mart engaged in the following transactions for Year 1. Sales tax of 7 percent is collected on all sales. 1. Book sales, not including sales tax, for Year 1 amounted to $279,000 cash. 2. Cash sales of miscellaneous items in Year 1 were $145,000, not including tax. 3. Cost of goods sold was $209,000 for the year. 4. Paid $130,000 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 Vail Book Mart collected and paid for the year? Sales tax collected $ 29,680 b. Prepare the journal entries for the preceding transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) View transaction list View journal entry worksheet No Event General Journal Debit Credit 279,000 Book sales B2 Miscellaneous Sales 145,000 Cost of goods sold 209.000 Operating expenses 130.000 E 5 Sales tax payable 20.00 c. What is Vail Book Mart's net income for the year? Net income $ 85,000