SALES TAX Weston Cellular provides wireless phone service. During April 2010, it billed customers a total of
Question:
SALES TAX Weston Cellular provides wireless phone service. During April 2010, it billed customers a total of $75,000 before taxes. Weston also must pay the following taxes on these charges:
. State of Illinois sales tax of 6 percent
. Federal excise tax of 0.01 percent
. State of Illinois use tax of 0.05 percent Required:
Assuming Weston collects these taxes from the customer, what journal entry would Weston make when the customers pay their bills?
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Related Book For
Cornerstones Of Financial Accounting Current Trends Update
ISBN: 9781111527952
1st Edition
Authors: Jay Rich , Jeff Jones, Maryanne Mowen , Don Hansen
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