LooseLeaf for College Accounting: A Contemporary Approach
4th Edition
ISBN: 9781259995057
Author: M. David Haddock Jr. Professor, John Ellis Price, Michael Farina
Publisher: McGraw-Hill Education
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Question
Chapter 7, Problem 7DQ
To determine
Explain when sales tax is entered in a firm’s accounting records. Also, determine account which is used to record this tax.
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Students have asked these similar questions
Which of the following statements is true about sales tax?
O a. Sales tax is collected by retailers from customers to be paid to tax authorities later.
O b. Sales tax is recorded and paid by customers to tax authorities.
O c. Sales tax is not required to be mentioned in the sales invoice prepared by a seller.
O d. Sales tax is the amount of discount extended to customers by retailers to be disclosed to tax authorities.
How is sales tax recorded? Is it considered an expense of a business? Why or why not?
Which of the following accounts is credited by the seller when tax is collected on retail sales?
A.
Payroll Tax
B.
Unearned Revenue
C.
Accounts Payable
D.
Sales Tax Payable
Chapter 7 Solutions
LooseLeaf for College Accounting: A Contemporary Approach
Ch. 7 - What is the name of the account used to record...Ch. 7 - What is a sales return? What is a sales allowance?Ch. 7 - Prob. 1.3SRQCh. 7 - Prob. 1.4SRECh. 7 - Prob. 1.5SRECh. 7 - Prob. 1.6SRACh. 7 - Prob. 2.1SRQCh. 7 - Prob. 2.2SRQCh. 7 - Prob. 2.3SRQCh. 7 - Prob. 2.4SRQ
Ch. 7 - Prob. 2.5SRECh. 7 - Prob. 2.6SRECh. 7 - Prob. 2.7SRACh. 7 - Prob. 1CSRCh. 7 - Prob. 2CSRCh. 7 - Prob. 3CSRCh. 7 - Prob. 4CSRCh. 7 - Prob. 5CSRCh. 7 - Prob. 1DQCh. 7 - Prob. 2DQCh. 7 - Prob. 3DQCh. 7 - Prob. 4DQCh. 7 - Prob. 5DQCh. 7 - Prob. 6DQCh. 7 - Prob. 7DQCh. 7 - Prob. 8DQCh. 7 - Prob. 9DQCh. 7 - Prob. 10DQCh. 7 - Prob. 11DQCh. 7 - Prob. 12DQCh. 7 - Prob. 13DQCh. 7 - Prob. 14DQCh. 7 - Prob. 15DQCh. 7 - Prob. 1ECh. 7 - Prob. 2ECh. 7 - Prob. 3ECh. 7 - Record the following transactions of Fashion Park...Ch. 7 - Prob. 5ECh. 7 - Prob. 6ECh. 7 - Prob. 7ECh. 7 - Prob. 8ECh. 7 - Prob. 9ECh. 7 - Prob. 10ECh. 7 - Prob. 1PACh. 7 - Prob. 2PACh. 7 - Prob. 3PACh. 7 - Prob. 4PACh. 7 - Prob. 5PACh. 7 - Prob. 6PACh. 7 - Prob. 1PBCh. 7 - Prob. 2PBCh. 7 - INSTRUCTIONS 1. Open the general ledger accounts...Ch. 7 - The Urban Florist is a wholesale shop that sells...Ch. 7 - Prob. 5PBCh. 7 - Prob. 6PBCh. 7 - Prob. 1CTPCh. 7 - Tony Zendejas is the owner of Housewares Galore, a...Ch. 7 - Prob. 1MFCh. 7 - Prob. 2MFCh. 7 - Prob. 3MFCh. 7 - Prob. 4MFCh. 7 - Prob. 5MFCh. 7 - Prob. 6MFCh. 7 - Prob. 7MFCh. 7 - Why should management insist that all sales on...Ch. 7 - Prob. 1ED
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Similar questions
- Explain why the merchandiser is not paying sales tax. Use the invoice that is below.arrow_forwardRecording sales tax Consider the following transactions of Sapphire Software: Journalize the transactions for the company Ignore cost of goods sold.arrow_forwardWho is responsible for collecting sales and excise taxes? Who actually pays the tax?arrow_forward
- When entering tax classes for the sales transaction type, what two items must you enter the tax classes for? What about the purchases transaction type? What information is included in tax groups? What is the purpose of defining vendor groups? How do you change the tax class in individual vendor profiles? List the three methods by which an invoice can be distributed, and give an example of each method. Explain the purpose of each method. What was the purpose for deleting the Accounts Payable opening balances batch in the General Ledger module for Omni Electrical Supplies Ltd.? Which accounts are affected and what must be done to ensure no errors are created?arrow_forwardThe seller collects sales taxes from the customer at the time of sale and reports the sales taxes as a. Sales tax expense. b. Sales tax revenue. c. Sales tax receivable. d. Sales tax payable.arrow_forwardWhich of the following would be included in the journal entry to record the payment of accrued sales tax? Select one: O a. A credit to Sales tax expense O b. A debit to Sales tax expense O c. A credit to Sales tax payable O d. A debit to Sales tax payablearrow_forward
- Which of the following groupings of accounts includes only accounts that carry a normal credit balance? a.Customer Refunds Payable, Estimated Returns Inventory, and Sales b.Sales Tax Payable, Cost of Goods Sold, and Sales c.Inventory, Delivery Expense, and Sales d.Sales Tax Payable, Customer Refunds Payable, and Salearrow_forwardan entity who does not pay at the time of a transaction as a results of credit sales is known asarrow_forwardWhat would signify the net amount that a business foresees to receive when the allowance method of accounting is used for bad debts that involve estimating collectible accounts?arrow_forward
- How do I calculate the amount of sales tax that is included in total receipts?arrow_forwardWhich is wrong? The term creditable input VAT means input VAT deductible from output VAT. Input VAT on personal consumption are creditable against output VAT. Only input VAT for purchase of goods or services in the course of business is creditable. Input VAT needs to be evidenced by a VAT invoice or VAT official receipt to be creditable.arrow_forwardWhat is the role of a sales invoice in the revenue recognition process?arrow_forward
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