Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at

image text in transcribed

image text in transcribed

image text in transcribed

image text in transcribed

Sales Tax A sale of merchandise on account for $36,000 is subject to an 8% sales tax. a. Should the sales tax be recorded at the time of sale or when payment is received? At the time of sale b. What is the amount credited to sales? $ 36,000 c. What is the amount debited to Accounts Receivable? $ 36,000 X d. what is the account to which the $2,880 ($36,000 896) is credited? Sales Tax Payable Feedback Check My Work

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Recommended Textbook for

Core Concepts Of Accounting

Authors: Leslie K. Breitner, Robert N. Anthony

10th Edition

0136029442, 9780136029441

More Books

Students also viewed these Accounting questions