Accounting answer Mountain View Furniture sold a dining table for $3,750 subject to a7.5% sales tax. The entry in the general journal will include a creditto Sales fora) $3,750.00b) $4,031.25c) $3,488.37d) $4,250.00

Step 1: Definition of Sales Credit in General JournalA sales credit in the general journal…

Answered: Mountain View Furniture sold a dining…

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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General accounting and question
Journalize the entries to record the following selected transactions: (a) Sold $ 2,000 of merchandise on account, subject to 6.25% sales tax. The cost of the merchandise sold was $ 1,500. (b) Paid $ 120 to the state sales tax department for taxes collected. Description Debit Credit
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A sale of merchandise on account for $12,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount of the sale?$fill in the blank 2 (c) What is the amount of the increase to Accounts Receivable? If required, round your answers to nearest whole value.$fill in the blank 3 (d) What is the title of the account in which the $960 (12,000 x 8%) is credited?Sales Tax Payable

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Mountain View Furniture sold a dining table for $3,750 subject to a 7.5% sales tax. The entry in the general journal will include a credit to Sales for a) $3,750.00 b) $4,031.25 c) $3,488.37 d) $4,250.00