which of the following illustrates the recognition of sales tax collected at the point of sale?

Balance Sheet Income Statement Statement of Assets = Liab. + Equity Rev. - Exp.Net Inc. Cash Flow a. n/a n/a n/a n/a n/a n/a

Expert Solution

Correct answer is option (d).

Balance Sheet					Income Statement					Statement of cash flow
Assets	=	Liabi.	+	Equity	Rev.	-	Exp.	=	Net income
+		+		n/a	n/a		n/a		n/a	+ OA

Explanation;

Sales tax collected at the point of sale will result into an increase in cash and sales tax payable but will not affect income statement.

On other hand it will result into an inflow of cash under operating activities (OA).

As we know that following entry is made at the time of sale for sales tax;

	Debit	Credit
Cash	XXX
Sales Tax Payable		XXX

ekkarill92 answered 2 years ago

Which of the following best illustrates a regressive tax(Income, sales property or excise)?

DESCRIBE ACCOUNTING ISSUES FOR REVENUE RECOGNITION AT POINT OF SALE.

All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale.

Black Horse Transportation's sales budget for the first quarter follows: January February March $125,000 300,000 290,000 All sales are on account (credit) with 50% collected in the month of sale, 30% collected in the following month after sale, and 20% collected in the second month after sale. There are no uncollectable accounts. The March cash receipts are: Select one: A. $250,500 B. $172,500 C. $102,500 D. $260,000

Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale.

Harrti Corporation has budgeted for the following sales: July August September October November December $455,000 $557,000 $663,000 $823,000 $773,000 $733,000 Sales are collected as follows: 10% in the month of sale; 60% in the month following the sale, and the remaining 30% in the second month following the sale. In Razz's budgeted balance sheet at December 31, at what amount will accounts receivable be shown?$733,000 $659,700 $891,600 $231,900

Recognition of amortization of an intangible asset illustrates which principle of accounting?

Recognition of amortization of an intangible asset illustrates which principle of accounting? Expense recognition Full disclosure Revenue recognition Historical cost

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the...

Seventy percent of Pitkin Corporation's sales are collected in the month of sale, 20% in the month following sale, and 10% in the second month following sale. The following are budgeted sales data for the company: January February March April Budgeted sales $200,000 $300,000 $350,000 $250,000 Total budgeted cash collections in April would be: Multiple Choice $175,000 $275,000 $70,000 $30,000

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?

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?

Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15%...

Receivables are collected 40% in the month of sale, 45% in the month following sale, and 15% in the second month following sale. Budgeted sales: July $28,000, August $24,000, September $30,000 Determine the September ending receivables balance: 1.b. The budgeted sales volume is 8,700 units. Inventories planned for the period : Beginning Ending Direct material 8,000 8,500 Finished goods 2,400 2,800 Each unit of finished goods requires four units of direct material in production. Work in process inventory is zero at the beginning and end of the period....

A retail company must file a monthly sales tax report listing the sales for the month and the amount of sales tax collected.

make it in C++ with pointerA retail company must file a monthly sales tax report listing the sales for the month andthe amount of sales tax collected. Write a program that asks for the month, the year,and the total amount collected at the cash register (that is, sales plus sales tax). Assumethe state sales tax is 4 percent and the county sales tax is 2 percent.If the total amount collected is known and the total sales tax is 6 percent,...

Question