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T Corp sold tangible personal property to its customers for $500. T Corp has nexus in the state where the sales tax rate is 5%.
T Corp sold tangible personal property to its customers for $500. T Corp has nexus in the state where the sales tax rate is 5%. The company will make a journal entry for the transaction. Identify the accounts that the company will use.
Account | Debit | Credit |
[ Select ] ["Sales Tax Expense", "Revenue", "Sales Tax Payable", "Cash or Accounts Receivable"] | $525 | |
[ Select ] ["Revenue", "Sales Tax Expense", "Cash or Accounts Receivable", "Sales Tax Payable"] | $ 25 | |
[ Select ] ["Cash or Accounts Receivable", "Sales Tax Payable", "Sales Tax Expense", "Revenue"] | $500 |
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