Sales tax transactions Journalize the entries to record the following selected transactions. a. Sold $587,000 of merchandise on account, subject to a sales tax of 8%, The cost of the goods sold was $346,330. If an amount box does not require an entry, leave it blank. Accounts Receivable v accounts Receivable ] X Sales v [ [ 'Sales Tax Payable v D | Cost of Goods Sold v U 0oo ) Inventory ~ D Feedback Check My Work a. Two entries are required: (1) for the sale on account including sales tax (2) for the cost of the goods sold and inventory decrease on the seller's records. b. Paid $49,850 to the state sales tax department for taxes collected. If an amount box does not require an entry, Sales Tax Payable ~ D D B leave it blank. Cash