Red Pheasant Corp sold $100 worth of inventory on account in 2021. Its customer will pay cash
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Question:
Red Pheasant Corp sold $100 worth of inventory on account in 2021. Its customer will pay cash next year. What journal entries should Red Pheasant make in 2021 and 2022?
Government requires Red Pheasant to pay taxes when the cash is collected. Tax rate is 20%.
2021
Account | Debit | Credit |
2022
Account | Debit | Credit |
Related Book For
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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