**Prepare the Entry to Record Ayayai's Cash Sales:***(If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when the amount is entered. Do not indent manually. List all debit entries before credit entries.)*| **Account Titles and Explanation** | **Debit** | **Credit** ||------------------------------------|-----------|------------|| Cash | 23,940 | || Sales Revenue | | || Sales Taxes Payable | | | **Ayayai Corporation Sales Transaction Entry****Scenario:**Ayayai Corporation made credit sales of $27,000, which are subject to a 5% sales tax. Additionally, the corporation made cash sales totaling $23,940, including the 5% sales tax.**Instructions:**Prepare the entry to record Ayayai’s credit sales. If no entry is required, select “No Entry” for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when an amount is entered. Do not indent manually. List all debit entries before credit entries.**Journal Entry Table:**| Account Titles and Explanation | Debit | Credit ||--------------------------------|--------|--------|| Accounts Receivable | 28350 | || Sales Revenue | | 27000 || Sales Taxes Payable | | 1350 |**Explanation of the Table:**- **Accounts Receivable** is debited by $28,350. This represents the total amount due from customers on credit sales, including sales tax.- **Sales Revenue** is credited by $27,000. This reflects the total sales revenue before sales tax.- **Sales Taxes Payable** is credited by $1,350, representing the sales tax liability computed as 5% of the sales revenue. These entries ensure the company's books accurately reflect the credit sales and related sales tax liability.

JOURNAL ENTRIESJournal Entry is the first stage of Accounting Process. Journal Entry is the Process…

Prepare the entry to record Ayayai's cash sales. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sales Revenue Sales Taxes Payable Debit 23940 Credit

Prepare the entry to record Ayayai's cash sales. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. List all debit entries before credit entries.) Account Titles and Explanation Cash Sales Revenue Sales Taxes Payable Debit 23940 Credit

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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