A sale of merchandise on account for ($ 12,200) is subject to a (6 %) sales tax.
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A sale of merchandise on account for \(\$ 12,200\) is subject to a \(6 \%\) sales tax.
(a) Should the sales tax be recorded at the time of sale or when payment is received?
(b) What is the amount of the sale?
(c) What is the amount debited to Accounts Receivable?
(d) What is the title of the account to which the \(\$ 732(\$ 12,200 \times 6 \%)\) is credited?
obj. 3
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Related Book For
Financial Accounting
ISBN: 9780324380675
10th Edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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