Sales Tax: The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased. To explain: The recording of sales tax and if it is considered as business expense and the reason for the same

Question

Want to see the full answer?

Answer 1

Question

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

If you give me wrong answer this financial accounting question I will give you unhelpful rate

Find the firm's asset turnover ratio and ROA of this financial accounting question

Tutor help this question. General accounting

Answer 2

Question

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Answer 6

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Answer 7

Chapter 11, Problem 3RQ

To determine

Sales Tax:

The Government levies sales tax on sale of goods or services by a retailer. Sales tax is generally based on the certain percentage of the sale amount and forms a part of Government revenue. The retailer needs to collect the same from the customer and remit it to the Government. Until the sales tax collected is remitted, it forms part of the current liabilities of the business. In case a business purchases goods, sales tax paid to the seller forms part of the cost of goods purchased.

To explain:

The recording of sales tax and if it is considered as business expense and the reason for the same

Answer 8

Expert Solution & Answer

Answer 9

Expert Solution & Answer

Answer 10

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 11

Ch. 11 - On January 1, 2018, a business borrowed $18,000 on...Ch. 11 - Prob. 2QC Ch. 11 - Prob. 3QC Ch. 11 - Prob. 4QC Ch. 11 - Prob. 5QC Ch. 11 - Prob. 6QC Ch. 11 - Prob. 7QC Ch. 11 - Prob. 8QC Ch. 11 - Prob. 9QC Ch. 11 - McDaniel and Associates reported the following...

Want to see the full answer?

Chapter 11 Solutions