Sales is an activity of selling the merchandise inventory of a business. To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

Question

Sales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount credited to sales?$ (c) What is the amount debited to Accounts Receivable? If required, round your answers to the nearest cent.$ (d) What is the account to which the $1,218.00 is credited?

Answer 1

Question

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

To Describe: The amount that should recorded as sales.

(c)

To determine

To Describe: The amount debited to accounts receivable.

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

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Sales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount credited to sales?$ (c) What is the amount debited to Accounts Receivable? If required, round your answers to the nearest cent.$ (d) What is the account to which the $1,218.00 is credited?

A sale of merchandise on account for $15,750 is subject to a 7% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount recorded as sales? If required, round the answer to one decimal place.$ (c) What is the amount debited to Accounts Receivable? If required, round the answer to one decimal place.$ (d) What is the title of the account to which the $1,102.5 ($15,750 × 7%) is credited?Sales Tax Payable

A sale of merchandise on account for $12,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received?At the time of sale (b) What is the amount of the sale?$fill in the blank 2 (c) What is the amount of the increase to Accounts Receivable? If required, round your answers to nearest whole value.$fill in the blank 3 (d) What is the title of the account in which the $960 (12,000 x 8%) is credited?Sales Tax Payable

Answer 2

Question

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

To Describe: The amount that should recorded as sales.

(c)

To determine

To Describe: The amount debited to accounts receivable.

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

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Answer 3

Question

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

To Describe: The amount that should recorded as sales.

(c)

To determine

To Describe: The amount debited to accounts receivable.

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

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Answer 4

Question

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

To Describe: The amount that should recorded as sales.

(c)

To determine

To Describe: The amount debited to accounts receivable.

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

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Answer 5

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

(b)

To determine

To Describe: The amount that should recorded as sales.

(c)

To determine

To Describe: The amount debited to accounts receivable.

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

Answer 6

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

Answer 7

Chapter 6, Problem 6.17EX

(a)

To determine

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

Answer 8

(b)

To determine

To Describe: The amount that should recorded as sales.

Answer 9

(b)

To determine

To Describe: The amount that should recorded as sales.

Answer 10

(c)

To determine

To Describe: The amount debited to accounts receivable.

Answer 11

(c)

To determine

To Describe: The amount debited to accounts receivable.

Answer 12

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

Answer 13

(d)

To determine

To Describe: The the title of the account to which $2,880 is credited.

Answer 14

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Answer 25

Ch. 6 - What distinguishes a merchandising business from a...Ch. 6 - Can a business earn a gross profit but incur a net...Ch. 6 - The credit period during which the buyer of...Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 6DQ Ch. 6 - Who bears the freight when the terms of sale are...Ch. 6 - Name four accounts that would normally appear in...Ch. 6 - Audio Outfitter Inc., which uses a perpetual...Ch. 6 - Assume that Audio Outfitter Inc. in Discussion...

Sales is an activity of selling the merchandise inventory of a business. To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

Solution Summary: The author explains that sales tax is recorded at the time of slae or at payment. The amount of 36,000 should be recorded as sales.

Sales is an activity of selling the merchandise inventory of a business.

To Describe: Whether sales tax should recorded at the time of slae or at the time of payment.

To Describe: The amount that should recorded as sales.

To Describe: The amount debited to accounts receivable.

To Describe: The the title of the account to which $2,880 is credited.

Chapter 6 Solutions