Question
Dextra Computing sells merchandise for $14,000 cash on September 30 (cost of merchandise is $9,800). Dextra collects 4% sales tax. Record the entry for the
Dextra Computing sells merchandise for $14,000 cash on September 30 (cost of merchandise is $9,800). Dextra collects 4% sales tax. Record the entry for the $14,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
September 30
Record the cash sales and 4% sales tax.
September 30
Record the cost of September 30th sales.
October 15
Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
Ticketsales, Incorporated, receives $6,840,000 cash in advance ticket sales for a four-date tour of Bon Jovi. Record the advance ticket sales on October 31. Record the revenue earned for the first concert date of November 5, assuming it represents one-fourth of the advance ticket sales. Ticketsales, Incorporated initially records prepaid and unearned items in balance sheet account
October 31
Record the cash receipt in advance of concerts.
November 05
Record the concert revenues earned.
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