Question
Red Pheasant Corp sold $100 worth of inventory on account in 2021. Its customer will pay cash next year. What journal entries should Red Pheasant
Red Pheasant Corp sold $100 worth of inventory on account in 2021. Its customer will pay cash next year. What journal entries should Red Pheasant make in 2021 and 2022?
Government requires Red Pheasant to pay taxes when the cash is collected. Tax rate is 20%.
2021
| Account | Debit | Credit |
2022
| Account | Debit | Credit |
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Advanced Accounting
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
14th Edition
1260247821, 978-1260247824
