Sales tax payable: The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price. To explain: Whether sales taxes are reported as an expense in the income statement.

Question

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Answer 1

Question

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

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Answer 2

Question

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

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Answer 3

Question

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

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Answer 4

Question

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

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Answer 5

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

Answer 6

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

Answer 7

Chapter 10, Problem 3Q

(a)

To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically remits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are expressed as percentage of the sales price.

To explain: Whether sales taxes are reported as an expense in the income statement.

Answer 8

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

Answer 9

(b)

To determine

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

Answer 10

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Answer 11

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Answer 12

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Answer 13

Ch. 10 - Prob. 1Q Ch. 10 - Prob. 2Q Ch. 10 - Prob. 3Q Ch. 10 - Prob. 4Q Ch. 10 - Prob. 5Q Ch. 10 - Prob. 6Q Ch. 10 - 6 What are long-term liabilities? Give three...Ch. 10 - 17 As a source of long-term financing, what are...Ch. 10 - Prob. 9Q Ch. 10 - Prob. 10Q

To Prepare: Journal entry to record cash proceeds from sales that include sales tax.

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Chapter 10 Solutions