M10-2 Recording Sales and State Tax [LO 10-2]

[The following information applies to the questions displayed below.]

Heines Clocks is a retailer of wall, mantle, and grandfather clocks and is located in the Empire Mall in Sioux Falls, South Dakota. Assume that a grandfather clock was sold for $10,500 cash plus 4 percent sales tax. The clock had originally cost Heines $6,500. Assume Heines uses a perpetual inventory system.

9.

value: 11.12 points

Required information

M10-2 Part 2

2.	Prepare the journal entries related for the above transactions. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)