Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $150,000 before taxes. Weston before taxes. Weston also must pay the following taxes on these charges: State of Kansas sales tax of 6% Federal excise tax of 0.2% State of Kansas use tax of 0.4% Required: Assuming Far and Wide collects these taxes from the customer, what journal entry would Far and Wide make when the customers pay their bills? If an amount box does not require an entry, leave it blank.     fill in the blank 2 fill in the blank 3     fill in the blank 5 fill in the blank 6     fill in the blank 8 fill in the blank 9     fill in the blank 11 fill in the blank 12     fill in the blank 14 fill in the blank 15   (Record sale)

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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Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $150,000 before taxes. Weston before taxes. Weston also must pay the following taxes on these charges:

  1. State of Kansas sales tax of 6%
  2. Federal excise tax of 0.2%
  3. State of Kansas use tax of 0.4%

Required:

Assuming Far and Wide collects these taxes from the customer, what journal entry would Far and Wide make when the customers pay their bills? If an amount box does not require an entry, leave it blank.

    fill in the blank 2 fill in the blank 3
    fill in the blank 5 fill in the blank 6
    fill in the blank 8 fill in the blank 9
    fill in the blank 11 fill in the blank 12
    fill in the blank 14 fill in the blank 15
  (Record sale)  
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