In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales. 1.

Question:

In providing accounting services to small businesses, you encounter the following situations pertaining to cash sales.

1. Grainger Company rings up sales and sales taxes separately on its cash register. On

April 10 the register totals are sales $25,000 and sales taxes $1,750.

2. Darby Company does not segregate sales and sales taxes. Its register total for April 15 is $13,780, which includes a 6% sales tax.

Instructions

Prepare the entries to record the sales transactions and related taxes for

(a) Grainger Company and

(b) Darby Company.


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Financial Accounting Tools for Business Decision Making

ISBN: 978-0470239803

5th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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