1. Sales Tax

Payton Company made cash sales during the month of January 2020 of $3,000,000. The sales are subject to an 8.25% sales tax that was also collected.

1. Prepare the journal entry to record the sale and sales tax.
2. Assume that the $3,000,000 includes both the selling price of the products and the sales tax. Prepare the journal entries to record the sale and the amount due the taxing unit.

step buy step with the calculations