A sale of merchandise on account for $12,000 is subject to an 8% sales tax. (a)  Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale  (b)  What is the amount of the sale?$fill in the blank 2 (c)  What is the amount of the increase to Accounts Receivable? If required, round your answers to nearest whole value.$fill in the blank 3 (d)  What is the title of the account in which the $960 (12,000 x 8%) is credited?Sales Tax Payable

Q: ALS & Co. sold goods with an invoice price of P5,700,000 on January 1, 2021. Trade discounts were…

A: Solution 1: Total trade discount = (P5,700,000*25%) + (P5,700,000*75%*5%) = P1,425,000 + P213,750 =…

Q: Assume that a company records purchases net of discount. If the company bought merchandise valued at…

A: Accounts payable will be recorded as net of discount as purchases are recorded net of discount. The…

Q: What is the net amount due (in $) on the order if the bill is paid by the 20th day?

A: Here is the answer for the above question.

Q: A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a)  Should the sales tax…

A: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question and…

Q: During the month of September, the following transactions occurred. The applicable sales tax rate is…

A: Journal entries: Journal entries record the transactions of a business. It presents transactions…

Q: During the month of September, the following transactions occurred. The applicable sales tax rate is…

A: Journal is the first place where a transaction is recorded. It contains record of transaction…

Q: On April 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Formula: Sales discount = Net sales x Discount rate

Q: Q4. A sale of merchandise on account for $5,000, terms n/30, is subject to an 8% sales tax. (a)…

A: Sales Tax - Sales Tax is the tax that charged by the the seller the customer. This is not the income…

Q: Use the following to answer the four questions below On January 17, 2022, Seller Company sold to…

A: Payment terms with  4/10 , n/30 it means a discount of 4% will be given if payment is made by buyer…

Q: Rosalie Co. uses the gross method to record sales made on credit. On June 10,2018, it made sales of…

A: A sale transaction under the gross method is recorded with the gross amount, i.e. no amount of…

Q: Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject…

A: Accounting for Sales Tax  business is collecting sales tax on behalf of tax authorities, the tax is…

Q: CPA Co. factored accounts receivable of P2,500,000 with credit terms of 3/10, n/30 immediately after…

A: Cash is an asset which is used as consideration for exchange of goods and services. It is treated as…

Q: On 10/1/2020, Al-Salam stores purchased goods from Al-Hamid stores for the amount of 800,000 dinars…

A: Required  Journal enrty for payment made.

Q: ABC Company sold merchandise with P10,000 list price, subject to trade discount of 25%, and is paid…

A: 2/10 net 30 means 2% discount will be there if payment is made with in 10 days and no discount after…

Q: Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject…

A: When we do sales,we need pay sales tax on sales made at a percentage given.That sales tax is…

Q: Merchandise is sold for cash. The selling price of the merchandise is $3,800 and the sale is subject…

A: Given: Selling price - $3,800 State sales tax-8%

Q: Mindful Corporation sells merchandise on account for $5,000 to Absent Corporation with credit terms…

A: Formula: Cash discount amount = Net sales x Discount rate

Q: On January 1, a company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30, what…

A: Sales discounts: The merchandisers offer a reduction in sales price on initial sales, to accelerate…

Q: Merchandise is sold for cash. The selling price of the merchandise is $3,700 and the sale is subject…

A: Given: Selling price - $3,700 State sales tax-8%

Q: Hoffman Company purchased merchandise on account from a supplier for $65,000, terms 1/10, n/30.…

A: Purchase: Purchase is an activity of acquiring the merchandise inventory of a business.

Q: Sara Company sold merchandise on credit with a list price of P105,000 and a trade discount of 10%.…

A: Trade discount = list price x trade discount rate = P105,000 x 10% = P10,500 Net sales = list price…

Q: A sale of merchandise on account for $36,000 is subject to an 8% sales tax. (a) Should the sales tax…

A: a) State whether the sales tax should be recorded at the time of sale or when payment is…

Q: Manuel Company had cash sales of $86,800 (including taxes) for the month of June. Sales are subject…

A: Solution: Amount of sales without tax = $86,800 * 100 / 108.50% = $80,000 Amount of sales tax =…

Q: Sales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a)  Should the…

A: Sales tax should be recorded at the time of sale.

Q: On December  1, BCX company made a sale of $87,500, on credit. If the credit terms were 2/10, n/30,…

A: The discount is given to the customers so as to receive payment from customers on the early basis.

Q: A company receives $696, of which $56 is for sales tax. The journal entry to record the sale would…

A: In the journal entry for the sale with sales tax, the cash is debited, sales revenue is credited,…

Q: Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within…

A: Net sales = Sales - Discount Gross profit = Net sales - Cost of goods sold

Q: On November 2, 2022, Crane Company has cash sales of $6040 from merchandise having a cost of $3540.…

A: Cash sales refers to those sales that are made in cash , or by credit cards or by a cheque. When a…

Q: Merchandise is sold for cash. The selling price is the merchandise is $5,000 and the sale is subject…

A: Sales tax payable = 5,000 x 5% = $250

Q: On October 12, Equipment Incorporated sells $53,000 worth of equipment on account to a credit…

A:

Q: Piedmont Company purchased merchandise on account from a supplier for $30000, terms 1/10, n/30.…

A: Given,  Purchases = $30,000 Purchase returns = $8,000 Cash discount = 1%

Q: Sales Tax Transactions Journalize the entries to record the following selected transactions.…

A: Tax or Taxes: Tax is an amount paid by the persons (individuals and business entities) to a…

Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…

A: Cost of purchase = 23000 Credit Terms = 2/10, n/30

Q: Milford Company uses the percent-of-sales method to estimate uncollectibles. Netcredit sales for the…

A: The percentage-of-sales strategy gauges uncollectible records from the credit sales of a given…

Q: A company receives $444, of which $44 is for sales tax. The journal entry to record the sale would…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: On May 1, RVQ Company sold goods for P6,000 on terms of 2/10, 1/15, n/30. Customer made a partial…

A: Introduction: Credit sales: Goods are sold on credit base to the customers called as Credit sales.…

Q: How much is the accounts payable? • How much is the discount if paid in full within the discount…

A: The question pertains to discount allowed on timely payment. Whenever goods are sold on credit the…

Q: Merchandise is sold for cash. The selling price of the merchandise is $2,000 and the sale is subject…

A: When merchandise is sold for cash and sales tax is applicable, then for recording the journal entry…

Q: Putman Company had cash sales of $75,950 (including taxes) for the month of June. Sales are subject…

A: Cash received  =$75950

Q: Merchandise costing $539 is sold for 1848 on terms 2/10, n/30. If the buyer pays within the discount…

A: Accounts receivables:  It implies to the amount that has been owed by the customers from the…

Q: Alexis Company has total credit sales proceeds of $4,515 in the check-out till. If the proceeds…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: What are the accounting entries required to record sales on credit of $10,000, on which sales tax is…

A: Lets understand the basics. Journal entry is required to make to record financial event and…

Q: State the accounting entries required if a business made sales on credit of $10,000, on which it…

A: Journal entries refer to the recording of transactions in an appropriate way. With the help of…

Q: Zom Inc. makes a sale for $400. The company is required to collect sales taxes amounting to 9%, What…

A: Sales taxes payable account is a current liability for the company that has been collected by the…

Q: Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…