Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $295,000 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 excise 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. (Record sale)
Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $295,000 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 excise 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. (Record sale)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Sales Tax
Far and Wide Broadband provides Internet connection services to customers living in remote areas. During February 2020, it billed a customer a total of $295,000 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 excise tax of 0.4%
Required:
Assuming Far and Wide collects these taxes from the customer, what
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