A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount recorded as sales? If required, round the answer to one decimal place.$ (c) What is the amount debited to Accounts Receivable? If required, round the answer to one decimal place.$ (d) What is the title of the account to which the $1,102.5 ($15,750 × 7%) is credited?Sales Tax Payable
A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount recorded as sales? If required, round the answer to one decimal place.$ (c) What is the amount debited to Accounts Receivable? If required, round the answer to one decimal place.$ (d) What is the title of the account to which the $1,102.5 ($15,750 × 7%) is credited?Sales Tax Payable
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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A sale of merchandise on account for $15,750 is subject to a 7% sales tax.
(a) Should the sales tax be recorded at the time of sale or when payment is received?
At the time of sale
(b) What is the amount recorded as sales? If required, round the answer to one decimal place.
$
(c) What is the amount debited to
$
(d) What is the title of the account to which the $1,102.5 ($15,750 × 7%) is credited?
Sales Tax Payable
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