A sale of merchandise on account for $28,000 is subject to a 7% sales tax. (a) Should
Question:
(a) Should the sales tax be recorded at the time of sale or when payment is received?
(b) What is the amount of the sale?
(c) What is the amount debited to Accounts Receivable?
(d) What is the title of the account to which the $1,960 ($28,000 x 7%) is credited?
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 75% (12 reviews)
a At the time o...View the full answer
Answered By
Amos Kiprotich
I am a wild researcher and I guarantee you a well written paper that is plagiarism free. I am a good time manager and hence you are assured that your paper will always be delivered a head of time. My services are cheap and the prices include a series of revisions, free referencing and formatting.
4.90+
15+ Reviews
21+ Question Solved
Related Book For
Financial and Managerial Accounting
ISBN: 978-0538480895
11th Edition
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
Question Posted:
Students also viewed these Accounting questions
-
A sale of merchandise on account for $13,750 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale?...
-
A sale of merchandise on account for $13,750 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale?...
-
A sale of merchandise on account for $4,000 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount of the sale? (c)...
-
On March 19, Modern Kitchens, a retail store, received Credit Memorandum 244 for $4,290 from J & M Appliance Corporation. The credit memorandum covered a return of damaged trash compactors originally...
-
Surkis Company acquires equipment at a cost of $42,000 on January 3, 2017. Management estimates the equipment will have a residual value of $6,000 at the end of its four-year useful life. Assume the...
-
A diver in the pike position (legs straight, hands on ankles) usually makes only one or one-and-a-half rotations. To make two or three rotations, the diver goes into a tuck position (knees bent, body...
-
A 1.2-lb kite with an area of \(6 \mathrm{ft}^{2}\) flies in a \(20-\mathrm{ft} / \mathrm{s}\) wind such that the weightless string makes an angle of \(55^{\circ}\) relative to the horizontal. If the...
-
Phillips, Inc., a cash basis C corporation, completes $100,000 in sales for year 1, but only $75,000 of this amount is collected during year 1. The remaining $25,000 from these sales is collected...
-
Pharma Company produces various medicines in capsule form. At the beginning of the month of February, it had 9 , 0 0 0 units that were 5 0 % complete. ese were assigned costs of $ 7 0 , 0 0 0 ....
-
In a brief essay (approximately one page or 250-300 words), provide your selected business venture and share how the use of the BMC can help your new business succeed. I wanted to pick event planner...
-
Determine the amount to be paid in full settlement of each of the following invoices, assuming that credit for returns and allowances was received prior to payment and that all invoices were paid...
-
Journalize the entries to record the following selected transactions: a. Sold $12,900 of merchandise on account, subject to a sales tax of 4%. The cost of the merchandise sold was $7,800. b. Paid...
-
What can be done by a general partner to limit the extent of its obligations to the limited partnership?
-
Question A8 A platinum wire has a resistance of 90 Ohms in ice water at 0 degrees Celsius, and 127.8 Ohms in boiling water at 100 degees Celsius. The wire is used to measure the temperature of a...
-
10. A ray of light falls on a horizontal plane mirror as shown. 40 In order to reflect the light ray vertically upwards, the plane mirror should be rotated by A. 20 B. 25 C. 40 D. 50
-
Question A5 A head-on collision occurs between a car of mass 1200kg, and a bus of mass 8,000 kg. Just before the collision, the car is travelling Northward at 20 m/s, and the bus is travelling...
-
Q3. 1. A bullet of mass 10.0 g is fired horizontally into a suspended block of wood of mass 2.50 kg. After a very rapid collision, the bullet gets stuck in the wood and the block then swings upward...
-
A tennis ball is tossed straight up into the air. In addition to the force of gravity, the tennis ball is subject to a frictional force due to air friction. The time the tennis ball takes to reach...
-
Indicate whether each of the following statements is true or false by writing T or F i n t he a nswer c olumn. The four elements of a product liability lawsuit are duty, breach, proximate cause, and...
-
When the concentration of a strong acid is not substantially higher than 1.0 10-7 M, the ionization of water must be taken into account in the calculation of the solution's pH. (a) Derive an...
-
Identify which type of foreign exchange solvency risk is larger for most banksdirect or indirectand explain why.
-
What is the key difference between the direct method and the indirect method for presenting a statement of cash flows?
-
Dual effects on balance shed equation. Fresh Foods Group, a European food retailer that operates supermarkets in sewn countries, engaged in the following three transactions during 2008: (1) Purchased...
-
Dual effects on balance sheet equation, Cement Plus, a firm specializing in building materials, engaged in the following four transactions during 2008: (1) Purchased and received inventory costing...
-
The Moon's diameter is 3.5x10 km, and its distance from Earth is 3.8x10 5 km. The image is formed by the Hale Telescope reflecting mirror, which has a focal length of +16.9 m. A. Determine the...
-
How does the position of the storm relative to the land influence the area with the fastest wind speeds?
-
An object moving on the x axis with a constant acceleration increases its x coordinate by 191 m in a time of 7.94 s and has a velocity of 20 m/s at the end of this time. Determine the acceleration of...
Study smarter with the SolutionInn App