Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $77 Ob. Cash for $1,100 Oc. Sales for $1,177 d. Cash for $1,177

Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would include a credit to a. Sales Tax Payable for $77 Ob. Cash for $1,100 Oc. Sales for $1,177 d. Cash for $1,177

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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Question

Merchandise is sold for cash. The selling price of the merchandise is $1,100 and the sale is subject to a 7% state sales tax. The journal entry to record the sale would
include a credit to
a. Sales Tax Payable for $77
Ob. Cash for $1,100
Oc. Sales for $1,177
Od. Cash for $1,177
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