Furniture World is required by law to collect and remit sales taxes to the state. If...

 

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Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales? Multiple Choice Debit Cash $82,680, credit Sales $78,000; credit Sales Taxes Payable $4,680. Debit Sales Taxes Payable $4,680; debit Cash S$73,220; credit Sales $78,000. Debit Cash $78,000; credit Sales $78,000; and record the taxes when paid. Debit Cash $78,000; credit Sales $73,320, credit Seles Taxes Payable $4,680. Debit Accounts Receivable $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680. Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales? Multiple Choice Debit Cash $82,680, credit Sales $78,000; credit Sales Taxes Payable $4,680. Debit Sales Taxes Payable $4,680; debit Cash S$73,220; credit Sales $78,000. Debit Cash $78,000; credit Sales $78,000; and record the taxes when paid. Debit Cash $78,000; credit Sales $73,320, credit Seles Taxes Payable $4,680. Debit Accounts Receivable $82,680; credit Sales $78,000; credit Sales Taxes Payable $4,680.

Answer rating: 100% (QA)

Cash sales 78000 Sales tax rate 6 Sales tax collected Cash sales x Sale... View the full answer