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Sales Tax Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, Internet services were sold, on
Sales Tax Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, Internet services were sold, on credit, to a customer for $181,000 before taxes. The customer must also pay the following taxes on these charges: a. State of Kansas sales tax of 6% b. Federal excise tax of 0.2% c. State of Kansas excise tax of 0.4% Required: Assuming Far and Wide collects these taxes from the customer, what journal entry would Far and Wide make to record the sale? If an amount box does not require an entry, leave it blank. Accounts Receivable Sales Taxes Payable (State) Excise Taxes Payable (Federal) Excise Taxes Payable (State) Sales Revenue (Record sale) 192,946 X 10,860 X 362 X 724 X 181,000 X
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