Carl's Video includes the amount of sales taxes - 14632

Solution Posted by
yousafbhutta

yousafbhutta

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Solution Detail
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  • From: Business,
  • Posted on: Fri 02 Nov, 2012
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Request Description

 

Carl's Video includes the amount of sales taxes collected directly in the price charged for merchandise, and the total amount is credited to Sales. During January, Sales was credited for $239,680. The January 31 adjusting entry to account for a 7% state sales tax should be

Answer

 

Sales                     15,680

   Sales Taxes Payable              15,680

 

Sales Tax Expense         15,680

   Sales Taxes Payable              15,680

 

Sales                     16,778

   Sales Taxes Payable              16,778

 

Sales Tax Expense         16,778

   Sales Taxes Payable              16,778

 

Solution Description

 

Carl's Video includes the amount of sales taxes collected directly in the price charged for merchandise, and the total amount is credited to Sales. During January, Sales was credited for $239,680. The January 31 adjusting entry to account for a 7% state sales tax should be

Answer