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 $$120,000$ 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 $0\mathrm{.}2\%$

c$.$ State of Kansas use tax of $0\mathrm{.}4\%$

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