XYZ Motors makes a sale of $15,600 on account. The sales tax rate is 8%. What is the amount debited to Accounts Receivable in the general journal on the sale of merchandise?

Question

Quizplus · Accepted Answer

The amount debited to Accounts Receivable includes both the sale amount and the sales tax. The sales tax is 8% of $15,600, which is $1,248. Therefore, the total debited amount is $15,600 (sale amount) + $1,248 (sales tax) = $16,848.

XYZ Motors Makes a Sale of $15,600 on Account