FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
FINANCIAL ACCOUNTING: TOOLS FOR BUSINES
9th Edition
ISBN: 9781119595649
Author: Kimmel
Publisher: WILEY
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Chapter 10, Problem 10.3BE
To determine

Sales tax payable:

The Company collects the tax from the customer when the sale is made on cash or on account, and periodically deposits the collections to the state’s department of revenue. Many states are implementing sales taxes on purchases made on the internet also. Sales taxes are computed as percentage of the sales price.

To compute: The sales taxes of Company G using sales revenue and percentage of sales tax.

To determine

To prepare: The journal entry to record sales tax payable and sales revenue

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FINANCIAL ACCOUNTING: TOOLS FOR BUSINES

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