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What is the correct entry to be made in Alexa's general ledger in respect of the invoice?
Sales (including sales tax) $ 150,000*
Purchases (net of sales tax) $ 60,000
Sales tax is charged at a flat rate of 20%. Lauren Co's sales tax account had a zero balance at the beginning of the month and at the end of the month.
* Lauren Co's sales for the month of $150,000 included $30,000 of sales exempt from sales tax.
What was the total sales tax paid to regulatory authorities at the end of March 20X9 (to the nearest $)?
What would the accounting equation after these transactions show?
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