Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to O a Sales for $5,580 O b. Sales Tax Payable for $420 O c. Cash for $6,000 O d. Sales for $6,420
Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to O a Sales for $5,580 O b. Sales Tax Payable for $420 O c. Cash for $6,000 O d. Sales for $6,420
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter8: Current And Contingent Liabilities
Section: Chapter Questions
Problem 7MCQ
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![Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to
Oa. Sales for $5,580
b. Sales Tax Payable for $420
c. Cash for $6,000
d. Sales for $6,420](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb07d0d7f-84b7-4347-8591-c8d3159fa4e0%2Fac5f48f6-d3c9-48f8-9e88-43a11e928ee6%2F5p6gdd_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Merchandise is sold for cash. The selling price of the merchandise is $6,000, and the sale is subject to a 7% state sales tax. The entry to journalize the sale would include a credit to
Oa. Sales for $5,580
b. Sales Tax Payable for $420
c. Cash for $6,000
d. Sales for $6,420
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