Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Kathy's Comer Store has total cash sales for the month of $37,000 excluding sales taxes. If the sales tax rate is 6%, which journal entry

image text in transcribed
Kathy's Comer Store has total cash sales for the month of $37,000 excluding sales taxes. If the sales tax rate is 6%, which journal entry is needed? (Ignore Cost of Goods Sold.) A. debit Cash $39,220, credit Sales Revenue $37,000 and credit Sales Tax Payable \$2,220 B. debit Cash $34,780, debit Sales Tax Receivable for $2,220 and credit Sales Revenue for $37,000 C. debit Cash $39,220, credit Sales Revenue $39,220 D. debit Cash $37,000 and credit Sales Revenue $37,000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamental Financial Accounting Concepts

Authors: J.K.

7th Edition

B003NPRW7I

More Books

Students also viewed these Accounting questions