Sunland Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $55,000. All salesare subject to a 10% sales tax.Compute sales taxes payable.Sales taxes payable2$Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount isentered. Do not indent manually.)Date Account Titles and ExplanationDebitCreditMar. 16

Solution 1: Sales = Total amount / 110% = 55000 / 110% = $50000 Sales tax payable = sales * 10% =…

Answered: Sunland Auto Supply does not segregate…

Sunland Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $55,000. All sale are subject to a 10% sales tax. Compute sales taxes payable.

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

Sunland Auto Supply does not segregate sales and sales taxes at the time of sale. The register total for March 16 is $55,000. All sales
are subject to a 10% sales tax.
Compute sales taxes payable.
Sales taxes payable
2$
Make the entry to record sales taxes payable and sales revenue. (Credit account titles are automatically indented when amount is
entered. Do not indent manually.)
Date Account Titles and Explanation
Debit
Credit
Mar. 16

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