Question
Lee Corporation operates a retail store in a state with an 8% sales tax. Lee records sales tax collected in the Sales Revenue account. Lee's
Lee Corporation operates a retail store in a state with an 8% sales tax. Lee records sales tax collected in the Sales Revenue account. Lee's unadjusted Sales Revenue for April totalled $2,535,405. Lee should post the following adjustng entry on April 30. All amounts are rounded to the nearest dollar.
Debit Sales Revenue $202,832; Credit Sales Tax Payable $202,832 | ||
Debit Sales Tax Payable $187,808; Credit Sales Revenue $187,808 | ||
Debit Sales Tax Payable $202,832; Credit Sales Revenue $202,832 | ||
Debit Sales Revenue $187,808; Credit Sales Tax Payable $187,808 |
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