Piper Company sold $12,000 of merchandise, and collected not only the sales price but also the sales tax. The sales tax rate is 5%. Some rich guy came into the store and charged the whole thing to his account that he had with the store which allows him to pay the amount later.

The following month, Piper Company paid to the state government the amount it had charged to that customer.

Make all journal entries to record what happened. If no journal entry should be made, explicitly say that no journal entry should be made.