a. During Year 6, ECU Corporation receives $535,000 CASH from customers equal to the selling price...
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a. During Year 6, ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax. / The total SALES REVENUE is equal to $500,000. The amount of the SALES TAX PAYABLE is equal to 7% of the selling price. Phrase 1st: 2nd: 3rd: Date Phrase Calculation of SALES TAX PAYABLE = 1st: 2nd: 3rd: 4th: Account Date $ Accounts Account = $ Category b. During Year 6 ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax, / all of which is also initially recorded to SALES REVENUE. / The amount of the SALES TAX PAYABLE is equal to 7% of the selling price, / also the amount by which SALES REVENUE is reduced. Cash collected (CASH collected / (1+ sales tax rate)) - ($ / (1+ Accounts AL SE RE contra + AL SE RE contra + AL SE RE contra + Category Debit AL SE RE contra AL SE RE contra AL SE RE Affect contra AL SE RE contra Debit Affect + + + + Dr. or Cr. - Dr Cr Dr Cr Dr Cr Credit Dr. or Cr. Dr Cr Dr Cr Dr Cr Dr Cr Credit a. During Year 6, ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax. / The total SALES REVENUE is equal to $500,000. The amount of the SALES TAX PAYABLE is equal to 7% of the selling price. Phrase 1st: 2nd: 3rd: Date Phrase Calculation of SALES TAX PAYABLE = 1st: 2nd: 3rd: 4th: Account Date $ Accounts Account = $ Category b. During Year 6 ECU Corporation receives $535,000 CASH from customers equal to the selling price of goods plus sales tax, / all of which is also initially recorded to SALES REVENUE. / The amount of the SALES TAX PAYABLE is equal to 7% of the selling price, / also the amount by which SALES REVENUE is reduced. Cash collected (CASH collected / (1+ sales tax rate)) - ($ / (1+ Accounts AL SE RE contra + AL SE RE contra + AL SE RE contra + Category Debit AL SE RE contra AL SE RE contra AL SE RE Affect contra AL SE RE contra Debit Affect + + + + Dr. or Cr. - Dr Cr Dr Cr Dr Cr Credit Dr. or Cr. Dr Cr Dr Cr Dr Cr Dr Cr Credit
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A Phrase Account 1st CASH 2nd SALES REVENUE 3rd SALES ... View the full answer
Related Book For
Advanced Financial Accounting
ISBN: 978-0137030385
6th edition
Authors: Thomas Beechy, Umashanker Trivedi, Kenneth MacAulay
Posted Date:
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