Cullumber Corporation made credit sales of $20,400 which are subject to 7% sales tax. The corporation...

Cullumber Corporation made credit sales of $20,400 which are subject to 7% sales tax. The corporation also made cash sales which totaled $25,038 including the 7% sales tax.

Prepare the entry to record Cullumber’s cash sales. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Account Titles and Explanation	Debit	Credit

Expert Solution

Prepare the entry to record Cullumber’s credit sales.
Accounts Titles and Explanation	Debit	Credit
Accounts receivable [Sales + Sales tax = $20,400 + $1,428]	$21,828
Sales / Sales revenue		$20,400
Sales tax payable [Sales x Tax rate = $20,400 x 7%]		$1,428
*(To record credit sales)*

.

Prepare the entry to record Cullumber’s cash sales
Accounts Titles and Explanation	Debit	Credit
Cash [Sales + Sales tax = $25,038 + $1,752.66]	$26,790.66
Sales / Sales revenue		$25,038.00
Sales tax payable [Sales x Tax rate = $25,038 x 7%]		$1,752.66
*(To record cash sales)*

ekkarill92 answered 1 year ago

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