On a given day, the downtown Nike shoe store sold 1,000 pairs of shoes with a retail selling price of $125 per pair (assume all
On a given day, the downtown Nike shoe store sold 1,000 pairs of shoes with a retail selling price of $125 per pair (assume all sales were in cash), plus 10% sales tax. What journal entry should Nike record?
a credit to Sales Tax Payable of $12,500.
a debit to Sales Tax Expense for $12,500.
a credit to Sales Revenue of $112,500.
a debit to Cash of $125,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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
Authors: Alison Warman, Jeff Davies
1st Edition
1861520379, 978-1861520371
