Modern Telephone billed a customer $5,089.20, an amount that includes an excise tax of 10% and a sales tax of 6%.
a. What amount of revenue should be recorded?
b. Present a general journal entry to record this transaction on Modern Telephone's books.

Question

Modern Telephone billed a customer $5,089.20, an amount that includes an excise tax of 10% and a sales tax of 6%. 
a. What amount of revenue should be recorded?
b. Present a general journal entry to record this transaction on Modern Telephone's books.

Quizplus · Accepted Answer

The Answer of Modern Telephone billed a customer $5,089.20, an amount that includes an excise tax of 10% and a sales tax of 6%. 
a. What amount of revenue should be recorded?
b. Present a general journal entry to record this transaction on Modern Telephone's books.

Modern Telephone Billed a Customer $5,089