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. Leiana’s Cafe has cash proceeds from sales of $8,550. This amount includes $550 of sales taxes. Give the entry to record the proceeds.

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Financial Accounting Tools for Business Decision Making

ISBN: 978-1119493631

9th edition

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

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Question Posted: Jul 10, 2019 08:32 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 for the taxing au...View the full answer

Financial Accounting Tools for Business Decision Making

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