A retailer recorded the following in August: Cash Sales: $3,500 Credit Sales: $12,000 Sales Returns and Allowances: $1,500 Assuming the sales tax rate is 6.5%, the entry to record the sales tax payment includes a debit to Sales Tax Payable for: a) $910 b) $910.75 c) $845 d) $845.75

A retailer recorded the following in August: Cash Sales: $3,500 Credit Sales: $12,000 Sales Returns and Allowances: $1,500 Assuming the sales tax rate is 6.5%, the entry to record the sales tax payment includes a debit to Sales Tax Payable for: a) $910 b) $910.75 c) $845 d) $845.75

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter9: Current Liabilities And Contingent Obligations

Section: Chapter Questions

Problem 6RE: Smith Company is required to charge customers an 8% sales tax on all goods it sells. At the time of...

See similar textbooks

Related questions

Q: Calculate ROA and ROE general accounting

A: Step 1: Definition of Return on Assets (ROA) and Return on Equity (ROE)Return on Assets (ROA) is a…

Q: Under variable costing,total period costs are

A: Explanation of Variable Costing:Variable costing is a costing method where only variable production…

Q: If sales are $420,000, variable costs are 72% of sales, and operating income is $40,000, what is the…

A: Approach to solving the question:Freeform Detailed explanation: The operating leverage is a measure…

Q: Net loss for the year?

A: Explanation of Net Loss:Net loss occurs when a company's total expenses exceed its total revenue for…

Q: What is the accounts receivable balance on November 30 2023 of this general accounting question?

A: Step 1: Define Accounts Receivable BalanceThe Accounts Receivable Balance represents the total…

Q: Determine the net cash flow for this general accounting question

A: Step 1: Calculation of total cash inflowsTotal Cash Inflows = Cash Sales Collected + Proceeds from…

Q: Please solve this problem

A: Step 1: Identify the highest and lowest activity levels From the table:Highest activity level (X):…

Q: Ans please

A: A. Raw Materials Purchase Price VarianceThis variance measures how much the actual cost of raw…

Q: Which option should be selected and why?

A: Explanation of Make-or-Buy Decision:A make-or-buy decision is a strategic choice businesses make…

Q: what was the amount of collections from customers?

A: Step 1: Analysis of information givenEnding balance of Accounts Receivables = $10,000Services billed…

Q: Hy expert please given answer

A: Step 1: Definition of Fringe Benefit CostFringe Benefit Cost refers to the additional costs incurred…

Q: What was the income from operations?

A: Step 1: Calculation of contribution marginContribution margin = Sales × Contribution margin…

Q: How much would you expect quarterly net operating income to increase?

A: The question asks for the determination of the contribution margin ratio and the increase in…

Q: The financial statements of the Bolton Manufacturing Company reported net sales of $530,000 and…

A: Concept of Average Accounts ReceivableAverage accounts receivable represents the midpoint value of a…

Q: If you give me wrong answer this financial accounting question I will give you unhelpful rate

A: Step 1: Define Total Comprehensive IncomeTotal Comprehensive Income represents a company's overall…

Q: Please give me true answer this financial accounting question

A: Step 1: Define Net IncomeNet income is the company's total profit after deducting all expenses,…

Q: Need Step by step answer

A: To calculate Net Operating Income (NOI), we use the formula: Net Operating Income=Sales−Cost of…

Q: ACCOUNT

A: Step 1: Definition of Return on Equity (ROE)Return on Equity (ROE) measures a company's…

Q: Calculate the number of units that must be sold in order to realize an opereting income

A: Step 1: Define Cost-Volume-Profit (CVP) AnalysisThe CVP analysis is considered for coming up with…

Q: Answer this Accounting Problem

A: Concept of Plan AssetsPlan Assets refer to the total funds accumulated in a pension plan, which are…

Q: Quick answer of this accounting questions

A: Step 1: Definition of Cash Flows from Financing ActivitiesCash flows from financing activities…

Q: What is the return on equity of this financial accounting question?

A: Step 1: Calculate Total AssetsWe know the debt ratio and total debt, so we can use the debt ratio…

Q: What effect on 2013 income should global report for creative co shares?

A: Explanation of Available-for-Sale Securities:Available-for-sale (AFS) securities are investments in…

Q: provide correct answer general accounting

A: Step 1: Definition of Net IncomeNet income refers to the total earnings of a business after…

Q: Provide accurate answer

A: Cash basis accounting refers to an accounting method where revenues are recognized when cash is…

Q: Hiii tutor give me Answer

A: To get the number of units that have to be sold to achieve the target profit, the following steps…

Q: expert of general account answer

A: Detailed explanation: Standard costs may be used by any kinds of organizations. It can be for profit…

Q: What is the labor efficiency variance for April?

A: Explanation of Labor Efficiency Variance:Labor efficiency variance measures the difference between…

Q: need help this questions

A: Approach to solving the question:Freeform Detailed explanation: Formula for Ending Merchandise…

Q: ABC Company sold a machine for $8,500 that originally cost $16,000. The balance of the Accumulated…

A: Concept of Book ValueBook value represents the net worth of an asset after accounting for…

Q: Solve this financial accounting problem

A: Step 1: Calculation of earnings available to common stockholdersEarnings available to common…

Q: Hi expert please give me answer general accounting question

A: Step 1: Definition of Predetermined Overhead RateThe predetermined overhead rate is a rate used to…

Q: If Ram Nation can give up one unit of future consumption and as a result increase its current…

A: Define the VariablesFuture Consumption: The amount of consumption Ram Nation has in the future (1…

Q: At the beginning of its current fiscal year, Willie Corp.'s balance sheet showed assets of $14,800…

A: Step 1: Determine the Beginning EquityStep 2: Determine the Ending EquityStep 3: Use the Retained…

Q: Vimal Manufacturing bases its manufacturing overhead budget on budgeted direct labor-hours. The…

A: Explanation of Manufacturing Overhead Budget: This is a detailed financial plan that outlines…

Q: general accounting

A: Step 1: Calculation of incremental taxesTaxes before the project = $31,000Taxes after the project =…

Q: How many dollars worth of sales are generated from every $1 in total assets?

A: 1.To solve this, we first need to calculate the total assets of the firm. The total assets can be…

Q: How much overhead would be applied to production?

A: Step 1: Predetermined overhead rate Predetermined overhead rate = Budgeted factory overhead/Budgeted…

Q: Used variable costing instead of absorption costing?

A: Explanation of Absorption Costing:Absorption costing is a costing method where all manufacturing…

Q: How much will company's net income increase?

A: Step 1. identify Given Information1.Variable costs are 35% of sales.2.The company plans an…

Q: Hello teacher please solve general accounting questions

A: Step 1: Definition of Operating CycleThe period that an entity has to wait from having finished…

Q: How many unit must be company sell in order to earn a profit

A: Here's how to calculate the number of units Bloom Enterprises needs to sell:1. Calculate the…

Q: Parker Industries applies manufacturing overhead costs to products at a budgeted indirect-cost rate…

A: Explanation of Manufacturing Overhead: Manufacturing overhead represents all indirect costs…

Q: Turners total year to date actule costa over or under budget?

A: Explanation of Budgeted Costs:Budgeted costs refer to the estimated expenses a company plans for a…

Q: What is the firm's wacc? Please solve this question

A: The Weighted Average Cost of Capital (WACC) formula is:WACC=(E/V)×Re+(D/V)×Rd×(1−Tc)where:Re = Cost…

Q: need help this questions

A: Step 1: Definition of Net IncomeNet income refers to the amount an individual or business retains…

Q: What is cat enterprises net loss for the year?

A: To determine Cat Enterprises' net loss, we subtract all expenses from the revenue: Net…

Q: Give this question general accounting

A: Step 1: Definition of Variance AnalysisVariance analysis involves comparing actual costs to standard…

Q: Financial Accounting

A: Concept of Net IncomeNet income represents the total earnings of a company after deducting all…

Q: Determine the total manufacturing costs incurred during the financial year 2022

A: Explanation of Total Manufacturing Costs:Total manufacturing costs represent the total expenses…

Question

100%

Provide solution this financial accounting question

A retailer recorded the following in August:
Cash Sales: $3,500
Credit Sales: $12,000
Sales Returns and Allowances: $1,500
Assuming the sales tax rate is 6.5%, the entry to record
the sales tax payment includes a debit to Sales Tax
Payable for:
a) $910
b) $910.75
c) $845
d) $845.75

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Similar questions

Prepare journal entries for the following sales and cash receipts transactions. (a) Merchandise is sold on account for 300 plus 3% sales tax, with 2/10, n/30 cash discount terms. (b) Part of the merchandise sold in transaction (a) for 70 plus sales tax is returned for credit. (c) The balance on account for the merchandise sold in transaction (a) is paid in cash within the discount period.
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $5,100 of merchandise on account, subject to a sales tax of 7%. The cost of merchandise sold was $3,010. For a compound transaction, if an amount box does not require an entry, leave it blank. b. Paid $47,320 to the state sales tax department for taxes collected.
On March 25, Osgood Company sold merchandise on account, $4,900, terms n/30. The applicable sales tax percentage is 5%. Required: Record the transaction. Refer to the Chart of Accounts for exact wording of account titles.
On March 25, Osgood Company sold merchandise on account, $5,300 terms n/30. The applicable sales tax percentage is 5%. Record the transaction. If an amount box does not require an entry, leave it blank. Mar. 25
D. The following selected account balances were taken from the records of J. Gucela Company, for the month of January 20B. (VAT of 12% is billed separately). Purchases P100,000 10,000 5,000 80,000 6,000 7,000 Purchase Returns & Allowances Purchase Discounts Sales Sales Returns and Allowances Sales Discounts 3 - Required: 1. Compute the Input Tax 2. Compute the Output Tax 3. Compute the Prepaid Tax 4. Entry to close the Output Tax to Input Tax 5. Where do we show the Prepaid Tax in the Financial Statements?
Target Shoppers Inc. reported cash sales of $28,800 for the month of June. Sales taxes payable are recorded at the point of sale. a. Assume that sales are subject to a 6% sales tax. Record the sales entry.b. Now assume that the cash collected on sales includes the 6% sales tax. Record the sales entry. ● Note: Round your answers to the nearest whole dollar. Account Name Dr. Cr. a. To record the sale entry. b. To record the sale entry.
Sales Tax Transactions Journalize the entries to record the following selected transactions. a. Sold $486,000 of merchandise on account, subject to a sales tax of 5%. The cost of the goods sold was $286,740. If an amount box does not require an entry, leave it blank. b. Paid $42,780 to the state sales tax department for taxes collected. If an amount box does not require an entry, leave it blank. Check My Work ▾ Previous Next
can I get some help with this question
Excise and Sales Tax Calculations Barnes Company has just billed a customer for $1,144, an amount that includes a 10% excise tax and a 6% state sales tax. a. What amount of revenue is recorded? b. Prepare a general journal entry to record the transaction on the books of Barnes Company. Round all answers to the nearest dollar. a. Amount of recorded revenue $ 0 b. Date Dec.31 Excise Tax Payable Sales Tax Payable General Journal Description 수 $ + To record sale on account subject to excise tax and sales tax. Debit 0 $ 0 0 0 Credit 0 0 0 0
On March 25, Osgood Company sold merchandise on account, $2,900, terms n/30. The applicable sales tax percentage is 5%. Required: Record the transaction. Refer to the Chart of Accounts for exact wording of account titles. CHART OF ACCOUNTS Osgood Company General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Merchandise Inventory 131 Estimated Returns Inventory 140 Supplies 142 Prepaid Insurance 180 Land 190 Equipment 191 Accumulated Depreciation LIABILITIES 210 Accounts Payable 216 Salaries Payable 221 Sales Tax Payable 222 Customer Refunds Payable 231 Unearned Rent 241 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales EXPENSES 510 Cost of Merchandise Sold 521 Delivery Expense 522 Advertising Expense 523 Depreciation Expense 526 Salaries Expense 531 Rent Expense 533 Insurance Expense 534…
A seller of goods has the following details of sales and collection during the month: Receivables, beginning P 500,000.00 Gross sales 700,000.00 Less: Collection 450,000.00 Receivables, end P 750,000.00 1. What is the amount subject to business tax? 2. Determine the amount subject to business tax if the taxpayer is a seller of services.
Sales tax transactions Journalize the entries to record the following selected transactions:A. Sold $640,000 of merchandise on account, subject to a sales tax of 7%. The cost of the goods sold was $385,000.B. Paid $61,750 to the state sales tax department for taxes collected