rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

rchandise, and the total amount is credited to Sales. During January, Sales was credited $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be) Sales 18,000 Sales Taxes Payable 18.000

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

(Jiffy Copies includes the amount of sales taxes collected directly in the price charged for
merchandise, and the total amount is credited to Sales. During January, Sales was credited
for $318,000. The January 31 adjusting entry to account for a 6% state sales tax would be)
а.
Sales
18,000
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
18,000
b.
18,000
18,000
с.
Sales
19,080
Sales Taxes Payable
Sales Tax Expense
Sales Taxes Payable
19,080
d.
19,080
19,080

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