Question: Explain why sales taxes collected by a merchandiser from customers when goods are sold are not recorded as sales revenue.

Explain why sales taxes collected by a merchandiser from customers when goods are sold are not recorded as sales revenue.

Step by Step Solution

★★★★★

3.37 Rating (166 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

The sales taxes are collected on behalf of the federal and pr... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1274-B-C-A-E-T(518).docx

120 KBs Word File

Students Have Also Explored These Related Cost Accounting Questions!

Q:

The InstantRide Management team founded a new team for car maintenance. The new team is responsible for the small maintenance operations for the cars in the Instant Ride system. The main idea is to...

Q:

1. The following information pertains to Walnut Corners: 2011 governmental fund revenues that became measurable and available in time to be used for payment of 2011 liabilities..... $16,000,000...

Q:

1. The following information pertains to Walnut Corners: 2016 governmental fund revenues that became measurable and available in time to be used for payment of 2016 liabilities...

Q:

Golden Corp., a merchandiser, recently completed its 2016 operations. For the year, (1) All sales are credit sales, (2) All credits to Accounts Receivable reflect cash receipts from customers, (3)...

Q:

(LO 3) Explain why sales taxes collected by a merchandiser from customers when goods are sold are not recorded as sales revenue.

Q:

P113AOn January 1, 2003, the ledger of Molega Software Company contains the following liability accounts: Accounts Payable $42,500 Goods and Services Tax Payable 5,800 Provincial Sales Tax Payable...

Q:

On January 1, 2003, the ledger of Molega Software Company contains the following liability accounts: Accounts Payable $42,500 Goods and Services Tax Payable 5,800 Provincial Sales Tax Payable 5,800...

Q:

On January 1, 2020, the ledger of Chuan-Kwang Luggage contains the following liability accounts (amounts in thousands). Accounts Payable .....................NT$52,000 Sales Taxes Payable...

Q:

Question: You must show the details of your work in Excel spreadsheets. Please HIGHLIGHT your final answers. The assignment will be marked based on (1) how you arrive at the solution, (2) is the...

Q:

Sales taxes collected by the retailer from customers are recorded as a(n) a. Liability b. Asset. c. Expense d. Revenue Salam Company has total receipts for the month of $16,170 including sales taxes....

Q:

Nidhi Ltd has had a difficult time. New competitors have entered the market and they have offeredconsiderably lower prices than Nidhi Ltd. Moreover, Nidhi Ltd has found that their costs keep rising,...

Q:

The Air Transport Association has reported the following kinds of information describing 23 individual U.S. airlines: total operating revenue, number of aircraft, number of employees, and number of...

Q:

Go to the books companion website and use information found there to answer the following questions related to Cadbury and Nestl. Instructions (a) What are the amounts of Cadburys and Nestls...

Q:

There are five filing statuses for your tax return, and they are affected by marital status and number of dependents. True False

Q:

Consider Review Exercise 3.66. There are two service lines. The random variables X and Y are the proportion of time that line 1 and line 2 are in use respectively. The joint probability density...

Q:

The mobile in Fig. 9-71 is in equilibrium. Object B has mass of 0.885 kg. Determine the masses of object A, C, and D. (Neglect the weights of the crossbars) 7.50 cm 30.00 cm 15.00 cm 5.00 cm 17.50 cm...

Q:

In a particular application involving fluid flow at a rate nz through a circular tube of length L and diameter D, the surface heat flux is known to have a sinusoidal variation with x, which is of the...

Q:

Slug flow is an idealized tube flow condition for which the velocity is assumed to be uniform over the entire tube cross section. For the case of laminar slug flow with a uniform surface heat flux,...

Q:

The surface of a 50-mm-diameter, thin-walled tube is maintained at 100C. In one case air is in cross flow over the tube with a temperature of 25C and a velocity of 30 m/s. In another case air is in...

Q:

1. Problem 15.17 The Bubble Company offers a picture of one of 25 popstars in a pack of chewing gum. John and Peter each buy one pack every week. They pool the pictures of the popstars. Assuming...

Q:

Red River Theatre has a cashier's booth located near the theatre entrance. There are two cashiers: one works from 1 p.m. to 5 p.m., the other from 5 p.m. to 9 p.m. Each cashier is bonded. The...

Q:

Bev's Design Services Ltd. commenced operations approximately nine months ago. Bev, the sole shareholder and designer, organizes the hall and table decorations for a variety of functions. Bev has...

Q:

High Tech Inc. commenced operations recently. Two friends from university, John Deol and Rehana Gerdman, jointly own the company's shares. John and Rehana have developed a new soft ware application...

Q:

Assume Gillette Corporation will pay an annual dividend of $0.64 one year from now. Analysts expect this dividend to grow at 12.1\% per year thereafter until the 5 th year. Thereafter, growth will...

Q:

After about 10 months of saving $500 a month, Mary has achieved her goal of saving $ 5,000 that she will use as a down payment on a new car. Marys new car is priced at $25,000 plus 8.75% sales tax....

Q:

FaceBook will deposit $130 every week to your retirement account. You plan to retire 30 years from now. The interest you can earn in this investment is 12 percent. How much is this investment worth...