In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed
Question:
In a particular state, the sales tax rate is 5 percent of sales. The retailer is allowed to record both the selling price and the tax in the same account. Explain how to compute the sales tax due when this method is used.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 76% (13 reviews)
To gross up the sales divide total of Sales account by 105 percen...View the full answer
Answered By
Praneeth vikram podapati
I have been working as Q & A expert at Chegg India where I solve questions posted by students in Computer science and Maths, I have worked as assistant to my professor in Database Management course during 5th semester of my Bachelors degree.
0.00
0 Reviews
10+ Question Solved
Related Book For
College Accounting A Contemporary Approach
ISBN: 978-0077639730
3rd edition
Authors: David Haddock, John Price, Michael Farina
Question Posted:
Students also viewed these Accounting questions
-
The Campus Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The Campus Book Store engaged in the following transactions for 2010. Sales tax of 7...
-
The University Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The University Book Store engaged in the following transactions for 2012. Sales...
-
The Rebel Book Store sells books and other supplies to students in a state where the sales tax rate is 7 percent. The Rebel Book Store engaged in the following transactions for 2013. Sales tax of 7...
-
Select only 2. Two questions which can be used to address ethical issues impacting organizations and Human Resource Management include: What would my Supervisor say? Does this behavior or result meet...
-
BizKid Companys adjusted trial balance on August 31, 2011, its fiscal year-end, follows. On August 31, 2010, merchandise inventory was $25,000. Supplementary records of merchandising activities for...
-
A circular loop of diameter \(150 \mathrm{~mm}\) is placed on a wooden table that makes angle of \(24.5^{\circ}\) with a uniform magnetic field. What must be the magnitude of the magnetic field if...
-
Go to the library and find a journal article in your area of interest that contains empirical data but does not contain any visual representation of them. Use the data to create a chart. Be sure to...
-
On July 1, 2012, Kim Wheeler established an interior decorating business, Aztec Designs. During the month, Kim completed the following transactions related to the business: July 1. Kim transferred...
-
4 Given the facts and circumstances set forth in the question above, Archie then decided that since he was probably going to be fired, he should use the truck to transport a sofa from his mom's house...
-
Mountain Mines Lubrication Ltd. (MML) supplies lubricant to mining operations in northern British Columbia and the Northwest Territories. MML commenced operations four years ago and is based in...
-
The sales tax on a credit sale is not collected from the customer immediately. When is this tax usually entered in a firm's accounting records? What account is used to record this tax?
-
What two methods are commonly used to record sales involving credit cards issued by credit card companies?
-
Which financial statement presents information related to changes in retained earnings and share repurchase?
-
" How can a socialization process benefit an organization and their employees? " Please explain your response in a detailed posting.
-
Review the TED-talk " Why the best hire might not have the perfect resume " by Regina Hartley which can be accessed using the link: https://youtu.be/jiDQDLnEXdA Summarize the speaker's views and then...
-
All candidates applying for a management trainee position are given a personality test that measures the five dimensions in the five-factor model. Which personality traits would you consider to be...
-
discuss how you would evaluate the effectiveness of your approach towards organizational leadership
-
How do the best leaders/managers impact their teams and shapeorganizational culture?
-
Do you think genetic drift would happen more quickly on an island or on the mainland? Data in Figure 11.7 First generation P (A gene frequency) = 5 q (a gene frequency) = .5 AA AA Aa Aa Aa Aa Aa Aa...
-
What are multinational corporations (MNCs) and what economic roles do they play?
-
What account balances or other amounts are included on two different financial statements for the period? Which statements are involved?
-
Which of the following would not be classified as Plant and Equipment on a balance sheet? a. Prepaid insurance b. Autos c. Store equipment d. Office equipment
-
Examine the following adjusting entries and determine which ones should be reversed. Show the reversing entries that should be recorded in the general journal as of January 1, 20X2. Include...
-
The heights (in inches) for a sample of 22 male adults are 62, 82, 79, 76, 73, 70, 67, 64, 61, 80, 79, 75, 72, 69, 66, 63, 75, 75, 72, 72, 68, 68 Send data to calculator Draw the histogram for these...
-
What are the facts of this case? Business Financing Solutions, Inc. ("BFS") is a small lending institution that specializes in providing loans to small businesses. BFS's president, Rachel Chen, has...
-
Royal Lawncare Company produces and sells two packaged products-Weedban and Greengrow. Revenue and cost Information relating to the products follow: Selling price per unit Variable expenses per unit...
Study smarter with the SolutionInn App