Stung, which is registered to account for sales tax, purchased furniture on credit at a cost of $8,000, plus sales tax of $1,200. What are the correct accounting entries to record this transaction? $ $ A Debit Furniture 9,200 Credit Supplier 9,200 B Debit Furniture 8,000 Credit Sales tax 1,200 Credit Supplier 6,800 C Debit Furniture 8,000 Credit Supplier 9,200 Debit Sales tax 1,200 D Debit Furniture 8,000 Credit Supplier 8,000
Stung, which is registered to account for sales tax, purchased furniture on credit at a cost of $8,000, plus sales tax of $1,200. What are the correct accounting entries to record this transaction? $ $ A Debit Furniture 9,200 Credit Supplier 9,200 B Debit Furniture 8,000 Credit Sales tax 1,200 Credit Supplier 6,800 C Debit Furniture 8,000 Credit Supplier 9,200 Debit Sales tax 1,200 D Debit Furniture 8,000 Credit Supplier 8,000
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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Question
Stung, which is registered to account for sales tax, purchased furniture on credit at a cost of
$8,000, plus sales tax of $1,200.
What are the correct accounting entries to record this transaction?
$ $
A Debit Furniture 9,200 Credit Supplier 9,200
B Debit Furniture 8,000 Credit Sales tax 1,200
Credit Supplier 6,800
C Debit Furniture 8,000 Credit Supplier 9,200
Debit Sales tax 1,200
D Debit Furniture 8,000 Credit Supplier 8,000
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