Best Buy stores sells a computer system to a customer for $500 in PA where the sales tax is 6%. The customer pays cash of $530 to Best Buy. The store records $500 sales revenue and sales tax expense of $30.

Group of answer choices

True

False

Question 2

On October 15, a company received $15,000 cash in advance on a consulting contract. The amount was a debit to cash and a credit to unearned revenue. By October 31, 10% of the services required by the contract were completed, and at that time will record a debit to unearned revenue and a credit to earned consulting revenue of $1,500 from this contract

Group of answer choices

True

False