Thurman Corp. charges its customers a 7% sales tax on all the goods it sells. At the time of sale, Thurman includes the combined sales and sales tax amount in the "Sales Revenue" account. Thurman makes an adjusting entry at the end of each month to adjust the "Sales Revenue" account to its correct balance. The amount of sales tax collected each month is remitted by the 10th day of the following month. At the end of May, the "Sales Revenue" account has a credit balance of $96,300.

Answer rating: 100% (QA)

To solve this problem we need to calculate the amount of sales revenue and the amount of sales tax ... View the full answer