Mansour Company Makes Sales on Which an 8% Sales Tax $\$ 900,000$

Essay

Mansour Company makes sales on which an 8% sales tax is assessed.The following summary transactions were made during 2010:
a. Cash sales of $\$ 900,000$ , excluding sales taxes.
b. Credit sales of $\$ 2,150,000$ , including sales taxes
c. Sales taxes of $\$ 250,000$ were paid to the state.
Required:
Prepare journal entries to record the preceding transactions.(Round to the nearest whole number.)