Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are
Furniture World is required by law to collect and remit sales taxes to the state. If Furniture World has $78,000 of cash sales that are subject to a 6% sales tax, what is the journal entry to record the cash sales? Multiple Choice Debit Cash $82,680, credit Sales $78,000; credit Sales Taxes Payable $4,680. O Debit Sales Taxes Payable $4,680; debit Cash $73,220, credit Sales $78,000. O Debit Cash $78,000, credit Sales $78,000, and record the taxes when paid. O Debit Cash $78,000; credit Sales $73,320; credit Sales Taxes Payable $4,680. O O Debit Accounts Receivable $82,680, credit Sales $78,000; credit Sales Taxes Payable $4,680
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started