Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Question 10 (3 points) A company had a special promotion where 'sales tax was included in the quoted price! They took in cash dollars of

image text in transcribed
Question 10 (3 points) A company had a special promotion where 'sales tax was included in the quoted price! They took in cash dollars of $10,000 during the special. The normal sales tax rate is 10% in their area. How would they record this transaction on the seller's books? dr. Cash 9,000 dr. Sales Tax expense 1,000 cr. Sales 10,000 Dr. Cash 10,000 Cr. Sales Tax Payable 909 Cr. Sales 9091 Dr. Cash 10,000 Cr. Sales Taxes Payable 1,000 Cr. Sales 9,000 Dr. Cash 9.091 Dr. Sales tax expense 909 Cr. Sales 10.000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Students also viewed these Accounting questions