(a) Your roommate says, Sales taxes are reported as an expense in the income statement. Do you...

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(a) Your roommate says, “Sales taxes are reported as an expense in the income statement.” Do you agree? Explain.

(b) Planet Hollywood has cash proceeds from sales of $7,400.This amount includes $400 of sales taxes. Give the entry to record the proceeds.

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Accounting Principles

ISBN: 978-0470533475

9th Edition

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

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Question Posted: Sep 13, 2011 08:35 AM

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(a) Your roommate says, Sales taxes are reported as an expense in the income statement. Do you...

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a Disagree The company only serves as a collection agent ...View the full answer

Accounting Principles

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