Connect Access Card for Financial Accounting: Information and Decisions
8th Edition
ISBN: 9781259662966
Author: John J Wild
Publisher: McGraw-Hill Education
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Chapter 9, Problem 2QS
1
Summary Introduction
Introduction:Sales tax is applicable on the amount of sales made by a company. it is a tax paid by the seller of the goods to the state government. The rate of sales tax is fixed by the government.
To prepare: The
2
Summary Introduction
Introduction:Sales tax is applicable on the amount of sales made by a company. it is a tax paid by the seller of the goods to the state government. The rate of sales tax is fixed by the government.
To prepare: The journal entry to record payment of sales tax to state government.
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Dextra Computing sells merchandise for $6,000 cash on September 30 (cost of merchandise is $3,900). Dextra collects 5% sales tax. (1) Record the entry for the $6,000 sale and its sales tax. (2) Record the entry that shows Dextra sending the sales tax on this sale to the government on October 15.
Dextra Computing sells merchandise for $16,000 cash on September 30 (cost of merchandise is $11,200). Dextra collects 7% sales tax.
Record the entry for the $16,000 sale and its sales tax. Also record the entry that shows Dextra sending the sales tax on this sale to the
government on October 15.
View transaction list
Journal entry worksheet
1
2
3
Record the cash sales and 7% sales tax.
Date
September
30
Note: Enter debits before credits.
General Journal
Debit
Credit
>
A retailer sells merchandise for $500 cash on June 30 (cost of merchandise is $300). The retailer collects 7% sales tax. Record the entry for the $500 sale and its applicable sales tax. Also record the entry that shows the taxes collected being sent to the government on July 15.
Chapter 9 Solutions
Connect Access Card for Financial Accounting: Information and Decisions
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- During December, Far West Services makes a $3,200 credit sale. The state sales tax rate is 6% and the local sales tax rate is 2.5%. Record sales and sales tax payable.arrow_forwardPosner Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Posner Co. records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $251,450. The amount of sales taxes payable (to the nearest dollar) to the state for the month of May is S12,573. b. S16.121. S20,762, d. a. C. S17,250arrow_forwardPosner Co. is a retail store operating in a state with a 7% retail sales tax. The retailer may keep 2% of the sales tax collected. Posner Co records the sales tax in the Sales Revenue account. The amount recorded in the Sales Revenue account during May was $251,450 What is the amount of sales taxes (round to nearest dollar) for May? What is the amount of sales taxes payable (round to nearest dollar) to the state for the month of May?arrow_forward
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