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Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
Edition 26ISBN: 978-1337498159 Exercise 76
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 recorded as sales (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 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 recorded as sales (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
Explanation
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Solution:
(a) Sales tax should be recor...
Accounting 26th Edition by Carl Warren ,Jim Reeve ,Jonathan Duchac
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