Cantrell Company is required by law to collect and remit sales taxes to the state. If Cantrell has $6500 of cash sales that are subject to an 9% sales tax, what is the journal entry to record the cash sales?
A. Debit Accounts Receivable $7085; credit Sales $6500; credit Sales Taxes Payable $585.
B. Debit Cash $6500; credit Sales $5915; credit Sales Taxes Payable $585.
C. Debit Cash $6500; credit Sales $6500; and record the taxes when paid.
D. Debit Cash $7085; credit Sales $6500; credit Sales Taxes Payable $585.
E. Debit Sales Taxes Payable $585; debit Cash $5915; credit Sales $6500.
Answer: D
You might also like to view...
The Lagrangian multiplier is the __________ for a constraint in a nonlinear problem.
A. shadow price B. payoff value C. reducing gradient D. reduced cost
Human Resources ISs are used extensively for managerial purposes, assisting in organizing quarterly and annual budgets for departments, divisions, and entire corporations.
Answer the following statement true (T) or false (F)
Accounts receivable presentation and disclosure Develop a list of substantive tests to test whether pledged, discounted, assigned, and related-party accounts receivable are properly disclosed
Which of the following statements regarding the allowance method of accounting for uncollectible receivables is incorrect?
A) Bad debt expense is not estimated. B) The Allowance for Bad Debts is used to hold the pool of "unknown" uncollectible accounts. C) The business does not wait to see which customers will not pay when estimating the allowance for bad debts. D) The allowance method is based on the matching principle.