Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Recording Sales Taxes Payable Cash sales for Zeviae Inc. in 2020 were $8 million. The majority of sales were subject to a sales tax rate
Recording Sales Taxes Payable Cash sales for Zeviae Inc. in 2020 were $8 million. The majority of sales were subject to a sales tax rate of 6%. Zeviae records sales taxes payable at the point of sale. Required a. Record the sales and sales tax entry for 2020 assuming that $160,000 of sales were not subject to tax. b. Now assume that cash collections for 2020 amounted to $8 million, which included a 6% sales tax along with the sales amount. Of the amount collected, $160,000 of sales were not subject to tax. Record the sales and sales tax entry for 2020. Note: Round your answers to the nearest whole dollar. Note: List multiple debits or credits (when applicable) in alphabetical order. Account Name Dr. Cr. a. 0 . b. - ooooo 0 0 0
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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