Sales Tax A sale of merchandise on account for $12,500 is subject to a 8% sales...

Sales Tax

A sale of merchandise on account for $12,500 is subject to a 8% sales tax.

(a) Should the sales tax be recorded at the time of sale or when payment is received?

(b) What is the amount credited to sales?
$

(c) What is the amount debited to Accounts Receivable?
$

(d) What is the account to which the $1,000.00 is credited?

Expert Solution

Answer A) Sales tax should be recorded at the time of sales.

Answer B) $12,500

Answer C) $13,500 ($12,500 + $1000)

Answer D) Sales tax payable account.

ekkarill92 answered 2 years ago

Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales...

Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sale or when payment is received? b. What is the amount of the sale?$ c. What is the amount debited to Accounts Receivable?$ d. What is the title of the account to which the $2,880 ($36,000 × 8%) is credited?

a. Sold $852,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $502,680.

Sales Tax TransactionsJournalize the entries to record the following selected transactions.a. Sold $852,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $502,680.If an amount box does not require an entry, leave it blank.Accounts ReceivableSalesSales Tax PayableCost of Goods SoldInventoryb. Paid $45,520 to the state sales tax department for taxes collected.If an amount box does not require an entry, leave it blank.Sales Tax PayableCash

37. A credit memorandum for $156 (sale price of merchandise $150; sales tax of $6) was...

37. A credit memorandum for $156 (sale price of merchandise $150; sales tax of $6) was issued to a customer for goods returned that had been purchased on account. To enter this transaction properly, a. Sales would be debited for $6. b. Sales would be debited for $150. c. Sales would be debited for $156. d. Sales would not be debited. 21. The sales account is a revenue account. a. True b. False 4. The supplier or vendor is the...

Exercise 7.4 Recording sales made for cash and on account, with 8 percent sales tax, and...

Exercise 7.4 Recording sales made for cash and on account, with 8 percent sales tax, and sales returns. LO 7-1 Record the following transactions of Fashion Park in a general journal. F ashion Park must charge 8 percent sales tax on all sales. DATE TRANSACTIONS 2019 April 2 Sold merchandise for cash, $2,500 plus sales tax. April 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer. April...

9. What is the journal entry to record the sale of $2,000 of merchandise on account?...

9. What is the journal entry to record the sale of $2,000 of merchandise on account? A. Dr. Accounts Receivable 2,000 Cr. Sales Revenue 2,000 B. Dr. Sales Revenue 1,900 Cr. Accounts Receivable 1,900 C. Dr. Accounts Payable 1,900 Cr. Sales Revenue 1,900 D. Dr. Cash 2,000 Cr. Sales Revenue 2,000 E. None of the above 10. Using the periodic method, what is the journal entry to record the purchase of $2,000 of merchandise inventory on credit, account? A. Dr....

Padres Co sells goods subject to a state sales tax of 8%. State law requires that...

Padres Co sells goods subject to a state sales tax of 8%. State law requires that the amount of sales tax collected during the month be remitted by the end of the following month. At the time of a sale, Padres Co credits the sales account for both the amount of sales revenue and sales tax. Sales tax, when paid, is then debited to the sales account. Accrual for sales tax payable is made only at December 31. Sales tax...

Superior Appliances is a retail store that sells household appliances. Merchandise sales are subject to an...

Superior Appliances is a retail store that sells household appliances. Merchandise sales are subject to an 8 percent sales tax. The firm’s credit sales for July are listed below, along with the general ledger accounts used to record these sales. The balance shown for Accounts Receivable is for the beginning of the month. DATE TRANSACTIONS July 1 Sold a dishwasher to John Martinez; issued Sales Slip 501 for $925 plus sales tax of $74. 6 Sold a washer to Helen...

A restaurant made cash sales of $4,000 subject to a 5% sales tax. Record the sales...

A restaurant made cash sales of $4,000 subject to a 5% sales tax. Record the sales and the related tax. Also record the payment of the tax to the state. On October 1, 2014, Rhodes Company purchased equipment at a cost of $10,000.00, signing a nine-month 8% note payable for that amount. Record the October 1 purchase and the adjusting entry needed on December 31, 2014. Record the entry for the payment of the note plus interest at maturity on...

Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $11,750 with terms 2/10,...

Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $11,750 with terms 2/10, n/30. The cost of the merchandise sold was $7,050. Sale Accounts Receivable Sales Cost Cost of Merchandise Sold Merchandise Inventory the debit/credit for acc receivable and sales is NOT $11750 b. Received payment less the discount. c. Issued a credit memo for returned merchandise that was sold for $11,000 terms n/30. The cost of the merchandise returned was $6,600. Refund Inventory

Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $78,600 with terms 1/10,...

Sales Transactions Journalize the following merchandise transactions: a. Sold merchandise on account, $78,600 with terms 1/10, n/30. The cost of the merchandise sold was $47,200. If an amount box does not require an entry, leave it blank. Sale Accounts Receivable fill in the blank b408b3fa8fce01a_2 78,600 fill in the blank b408b3fa8fce01a_3 Sales fill in the blank b408b3fa8fce01a_5 fill in the blank b408b3fa8fce01a_6 78,600 Cost Cost of Merchandise Sold fill in the blank b408b3fa8fce01a_8 47,200 fill in the blank b408b3fa8fce01a_9 Merchandise...

Question