During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%. The price of each battery includes a $1.95 federal excise tax. Any taxes collected must be paid to the appropriate governmental units at the end of the quarter. What is the proper journal entry to record for the sale of the batteries?
During the first quarter of the current year, the company sold 4,000 batteries on credit for $150 each plus state sales tax of 6%.
The price of each battery includes a $1.95 federal excise tax. Any taxes collected must be paid to the appropriate governmental units at the end of the quarter. What is the proper
Selling on credit means that a business allows customers to obtain goods or services immediately but defers the payment for a later date. It's a common practice in many industries where businesses offer "buy now, pay later" arrangements.
When a business sells products on credit, it needs to record these transactions accurately in its financial records.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
