Answered: Darmstadt Company sold merchandise for…

Darmstadt Company sold merchandise for which it received total cash payments of $2,632,200. A 7% sales tax was included in the total cash payments. The proper amount to record as sales would be:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Cheyenne Corporation made credit sales of $30,600 which are subject to 7% sales tax. The corporation…

A: Journal entries are prepared in a proper order which is as per the principle of double-entry…

Q: Sales tax transactions Journalize the entries to record the following selected transactions:A. Sold…

A: All the transactions of the company that are happened during the year will be recorded first in the…

Q: For questions 24-25, use the following information; Posner Co. is a retail store operating in a…

A: Hi! Thank you for the question, As per the honor code, we'll answer the first question since the…

Q: Blackcomet Company sells merchandise on account to Greentree Company in the amount of $3,800. The…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: During the current year, merchandise is sold for $95,500 cash and $1,315,000 on account. The cost of…

A: Gross margin (gross profit):Gross margin is the amount of revenue earned from goods sold over the…

Q: Sneasler Company appropriately withholds 9.75% on all of its sales transactions. During the period,…

A: Journal entry is the primary reporting of the business transactions in the books of accounts. These…

Q: Venus Corp. sold goods, with a selling price of $18,421, for cash. The state sales tax rate is 8%.…

Q: Bell Corporation sold merchandise on account with a list price of $18,000 and a cost of $10,000.…

A: Compute the Bell Corporation's net sales amount: Compute the value of discount:

Q: Barans Company purchased merchandise on account from a supplier for $13,000, terms 2/10, n/30.…

A: In case of no information for inventory system, the perpetual method is inventory is assumed. Using…

Q: ournalize the entries to record the following selected transactions: (a) Sold $ 2,000 of…

A: Definition: Journal: Journal is the method of recording monetary business transactions in…

Q: Merchandise is sold for cash. The selling price of the merchandise is $5,100 and the sale is subject…

A: Accounting for Sales Tax business is collecting sales tax on behalf of tax authorities, the tax is…

Q: On July 5, Feather Company recorded sales of merchandise inventory on account, $20,000. The sales…

A: The journal entries are prepared to record the transactions on a regular basis. The sales tax…

Q: Barron, Inc. sold goods for $888,500 on account. The company operates in a state that imposes a 12%…

A: Barron, Inc. sold goods for 888, 500 on account.Sales tax imposed on the sale of goods and…

Q: Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has…

A: Sales tax = $3,500*10% Sales tax = $350

Q: Salada Inc. sold merchandise for cash totaling $12,860 which includes 8.5% sales taxes. Journalize…

A: Journal Entries Record All Business Transactions In Accounting Journal. It Is The First Step Of…

Q: The following selected transactions were completed by Amsterdam Supply Co., which sells office…

A: Hence, the above journal entries to record the transaction in the A supply Company’s books of…

Q: The entry to record a sale on account of merchandise of $300 subject to sales tax of 6% includes a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Hell Ltd. sold merchandise for $20,000 on credit. The cost of merchandise sold was $11,900. The…

A: Perpetual Inventory System: A perpetual inventory system is a form of inventory control that uses a…

Q: ournalize the entries to record the following selected transactions. Refer to the Chart of Accounts…

A: Sales tax on sale = $64,300*5% Sales tax on sale = $3,215

Q: Cantrell co. is required by law to collect and remit sale taxes to the state. if Cantrell has 3,500…

A: Sales can be cash or credit

Q: On July 15, Piper Co. sold $10,000 of merchandise (costing $5,000) for cash. The sales tax rate is…

A: Sales Tax Payable: Sales Tax is levied on the sales made. It is collected by the seller from the…

Q: Prepare the entry to record Ayayai's cash sales. (If no entry is required, select "No Entry" for the…

A: JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Q: Abbey Co. sold merchandise to Gomez Co. on account, $35,000, subject to a sales tax of 5%. The cost…

A: Sales tax payable = Sales x sales tax rate

Q: Hallmark Cards, Inc. records sales and sales tax separately. On May 1, Jay’s Hallmark Shop in New…

A: Sales - Sales is a revenue earned by the company from sale of article or goods to the customer. The…

Q: On July 5, Bramley Company recorded sales of merchandise inventory on account, $45,000. The sales…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Salada Inc. sold merchandise for cash totaling $12,860 which includes 8.5% sales taxes. Journalize…

A: As per the given information:

Q: During the current year, merchandise is sold for $48000 cash and for $336000 on account. The cost of…

A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…

Q: c. Sold goods for $5,670, on account, which includes 6.5% sales tax. The company employes a gross…

A: In the first scenario, the seller records the sale of goods on account, including sales tax. The…

Q: Bargain Surplus made cash sales during the month of October of $475,000. The sales are subject to a…

A: Journal - The primary books of accounts in which transactions are first recorded in chronological…

Q: During the current year, merchandise is sold for $366,100 cash and $1,420,000 on account. The cost…

A: Gross margin (gross profit): Gross margin is the amount of revenue earned from goods sold over the…

Q: Avila Co. sold $10,000 of merchandise to Beasley Corp. on account with terms of 1/10, n/30. The…

A: Note: 1/10, n/30: Here, 1 represents the discount rate if payment is made within ten days. And if…

Q: Beverage sales are cashiered with the sales tax included. Compute the separate amounts for beverage…

A: Sales tax is computed as a percentage on the value of sales. It is included in the final value of…

Q: Sales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a) Should the…

A: Sales tax should be recorded at the time of sale.

Q: Posner Co. is a retail store operating in a state with a 7% retail sales tax. Posner made credit…

A: Sales Tax:- It is a tax which sellers pay to the government at the rate prescribed in law for the…

Q: Merchandise is sold for cash. The selling price is the merchandise is $5,000 and the sale is subject…

A: Sales tax payable = 5,000 x 5% = $250

Q: on july , family company recorded merchandise inventory on account , $50,000. the sales were…

A: JOURNAL ENTRIES Journal Entry is the First stage of Process of Accounting. Journal is the…

Question

Darmstadt Company sold merchandise for which it received total cash
payments of $2,632,200. A 7% sales tax was included in the total cash
payments.
The proper amount to record as sales would be:
A) $2,460,000
B) $2,568,168
C) $2,447,946
D) $2,736,000

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1: Sales Tax

VIEW

Step 2: Calculation of amount to be recorded as sales

VIEW

Solution

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 3 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

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.
Tell me why this is the answer as opposed to the others
Alpesh
During the current year, merchandise is sold for $43000 cash and for $307000 on account. The cost of merchandise sold is $82000. What is the amount of gross profit?
Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to Oa. Sales for $5,580 b. Sales Tax Payable for $420 c. Cash for $6,000 d. Sales for $6,420
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.
Journalize the entries to record the following selected transactions. Refer to the Chart of Accounts for exact wording of account titles. A. Sold $61,700 of merchandise on account, subject to a sales tax of 6%. The cost of the goods sold was $38,720. B. Paid $40,670 to the state sales tax department for taxes collected. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 120 Accounts Receivable 125 Notes Receivable 130 Inventory 131 Estimated Returns Inventory 140 Office Supplies 141 Store Supplies 142 Prepaid Insurance 180 Land 192 Store Equipment 193 Accumulated Depreciation-Store Equipment 194 Office Equipment 195 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 216 Salaries Payable 218 Sales Tax Payable 219 Customer Refunds Payable 220 Unearned Rent 221 Notes Payable EQUITY 310 Common Stock 311 Retained Earnings 312 Dividends REVENUE 410 Sales…
A store had receipts of $6045.50. If the sales tax rate is 7%, how much merchandise did the store sell? The value of the merchandise sold (not including sales tax) is $ (blank)
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 >
State the accounting entries required if a business made sales on credit of $10,000, on which it must account for sales tax at the rate of 20%.
anhoe Corporation made credit sales of $18,600 which are subject to 7% sales tax. The corporation also made cash sales which taled $24,503 including the 7% sales tax. ) Prepare the entry to record Ivanhoe's credit sales. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before Credit entries.) Account Titles and Explanation Accounts Receivable Debit 18600 Credit
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. O 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. Debit Accounts Receivable/Sky Builders, $15,550; Credit Sales, $15,550. %24