# Lets say your customer purchases a table for \$500 with cash. There.pdf

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Let's say your customer purchases a table for \$500 with cash. There's a 5% sales tax rate, meaning you receive \$25 in sales tax (\$500 X 0.05). The customer's total bill is \$525. The table cost you \$400. To reflect this, debit your COGS account \$400. And, credit your Inventory account \$400. Account Please explain COGS and Inventory part \$400 Date AccountNotesDebitCreditxxx/xxxCash525Sales Tax Payable25Revenue500COGS400Inventory400.

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### Lets say your customer purchases a table for \$500 with cash. There.pdf

• 1. Let's say your customer purchases a table for \$500 with cash. There's a 5% sales tax rate, meaning you receive \$25 in sales tax (\$500 X 0.05). The customer's total bill is \$525. The table cost you \$400. To reflect this, debit your COGS account \$400. And, credit your Inventory account \$400. Account Please explain COGS and Inventory part \$400 Date AccountNotesDebitCreditxxx/xxxCash525Sales Tax Payable25Revenue500COGS400Inventory400
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