Question
7. Illinois Bank lends Lisle Furniture Company $ 90,000 on December 1. Lisle Furniture Company signs a $ 90,000, 11%, 4-month note. The total cash
7. Illinois Bank lends Lisle Furniture Company $ 90,000 on December 1. Lisle Furniture Company signs a $ 90,000, 11%, 4-month note. The total cash paid at maturity of the note is: (Round your final answer to the nearest dollar.) A.94,950 B.93,300 C.99,900 D.90,000 8. Kathy's Corner Store has total cash sales for the month of $ 33,000 excluding sales taxes. If the sales tax rate is 8%, which journal entry is needed? (Ignore Cost of Goods Sold.) A.debit Cash $ 35,640, credit Sales Revenue $ 35,640 B.debit Cash $ 30,360, debit Sales Tax Receivable for $ 2,640 and credit Sales Revenue for $33,000 C.debit Cash $ 35,640, credit Sales Revenue $ 33,000 and credit Sales Tax Payable $ 2,640 D.debit Cash $ 33,000 and credit Sales Revenue $ 33,000 9. Montana Company sold merchandise with a retail price of $ 36,000 for cash. Montana Company is required to collect 6% state sales tax. The total cash received from customers was: A.38,160 B.2,160 C.36,000 D.33,840
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