American Steel accepted returned merchandise purchased on account by Sky Builders for, $14,450, plussales tax of $1,100. What is the journal entry for American Steel to record this transaction?Debit Sales, $15,550; Credit Accounts Receivable/Sky Builders, $15,550.O Debit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100; Credit AccountsReceivable/Sky Builders, $15,550.O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales Returns and Allowances,$14,450, Sales Tax Payable, $1,100.Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales, $15,550.%24

Sales Return - Sales Return is the sales made by the company due to some defect or quality issue…

American Steel accepted returned merchandise purchased on account by Sky Builders for, $14,450, plus sales tax of $1,100. What is the journal entry for American Steel to record this transaction? Debit Sales, $15,550; Credit Accounts Receivable/Sky Builders, $15,550. Debit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100; Credit Accounts Receivable/Sky Builders, $15,550. O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100. O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales, $15,550.

American Steel accepted returned merchandise purchased on account by Sky Builders for, $14,450, plus sales tax of $1,100. What is the journal entry for American Steel to record this transaction? Debit Sales, $15,550; Credit Accounts Receivable/Sky Builders, $15,550. Debit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100; Credit Accounts Receivable/Sky Builders, $15,550. O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales Returns and Allowances, $14,450, Sales Tax Payable, $1,100. O Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales, $15,550.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Swisher Company sold inventory with a selling price of $5,000 to customers for cash.It also collected sales taxes of $250. The journal entry to record this information includes aa. credit to Sales Tax Expense $250.b. credit to Sales Revenue $5,250.c. debit to Sales Tax Payable $250.d. debit to Cash of $5,250.
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