Excise and Sales Tax Calculations Clifford Company has just billed a customer for $1,100, an amount that includes a eight percent excise tax and a two percent state sales tax. a. What amount of revenue is recorded? b. Prepare a general journal entry to record the transaction on the books of Clifford Company. Round all answers to the nearest dollar. a. Amount of recorded revenue $ 0 b. General Journal Description Debit Credit = Excise Tax Payable Sales Tax Payable ◆ To record sale on account subject to excise tax and sales tax. Date Dec.31 $ 0 $ OOOO 0 0 0 0
Excise and Sales Tax Calculations Clifford Company has just billed a customer for $1,100, an amount that includes a eight percent excise tax and a two percent state sales tax. a. What amount of revenue is recorded? b. Prepare a general journal entry to record the transaction on the books of Clifford Company. Round all answers to the nearest dollar. a. Amount of recorded revenue $ 0 b. General Journal Description Debit Credit = Excise Tax Payable Sales Tax Payable ◆ To record sale on account subject to excise tax and sales tax. Date Dec.31 $ 0 $ OOOO 0 0 0 0
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Excise and sales tax calculations.
A. What amount of revenue is recorded?
B. Prepare a general journal entry to record the transaction on the books of Clifford company.
Round all answers to the nearest dollar.
The options for the description dropbox are: accounts receivable , excise tax payable, sales tax payable, sales.
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