Excise and Sales Tax Calculations

Barnes Company has just billed a customer for $$1,600,$ an amount that includes a $10\%$ excise tax and a $6\%$ state sales tax.

a$.$ What amount of revenue is recorded?

b$.$ Prepare a general journal entry to record the transaction on the books of Barnes Company.

Round all answers to the nearest dollar.

a$.$ Amount of recorded revenue $Answer

b$.$

General Journal

Date Description Debit Credit

Dec$\mathrm{.}31$ Answer

Answer

Answer

Excise Tax Payable Answer

Answer

Sales Tax Payable Answer

Answer

Answer

Answer

Answer

To record sale on account subject to excise tax and sales tax.