A sale of merchandise on account for $36,000 is subject to an 8% sales tax. (a) Should the sales tax be recorded at the time of sale or when payment is received? (b) What is the amount recorded as sales? (c) What is the amount debited to Accounts Receivable? (d) What is the title of the account to which the $2,880 ($36,000 × 8%) is credited?

Q: can I get some help with this question

A: Given information is: Billing amount = $1100 Excise tax = 8% State Sales Tax = 2%

Q: During the current year, merchandise is sold for $53,640 cash and for $82,660 on account. The cost…

A: Gross profit represent the excess amount of revenue over the cost of merchandise sold.

Q: Blackcomet Company sells merchandise on account to Greentree Company in the amount of $3,800. The…

A: Journal entry is the act of keeping records of transactions in an accounting journal. An accounting…

Q: Excise and Sales Tax Calculations Clifford Company has just billed a customer for $1,100, an amount…

A: Revenue: It implies to the income that is earned by the business during it's course of trading…

Q: Assume that the percentage of sales method was used instead by the company and that on December…

A: a) Compute the uncollectible expense to be charged to the uncollectible expense account:…

Q: Compute the amount to be paid for each of the four separate invoices assuming Merchandise Terms…

A: Formula: Cash discount = Gross amount x discount % Payment = Gross amount - Cash discount

Q: A sales invoice included the following information: merchandise price, P4,200; transportation, P320;…

A: Discount on payment = (sales - sales return) x discount rate = (4200-600)*1% = P36

Q: Help

A: You need to calculate the gross profit from the sale of merchandise during the current year.…

Q: Sold merchandise on account to Larry Simpson, $4,780.00, plus sales tax. S395.

A: The journal entries are prepared to keep the record of day to day transactions of the business.

Q: Coronado Industries made a $26000 sale on account with the following terms: 3/10, n/30. If the…

A: The answer is as fallows

Q: Which of the following represents the correct journal entry to record a taxable cash sale of $400 if…

A: Introduction:- At the time of record received sales tax from customers, journal entry will be, debit…

Q: Merchandise is sold on account to a customer for $17,800, terms FOB shipping point, 1/10, n /30. The…

A: The credit terms is 1/10, n/30 which means if the payment has been paid within 10 days, then 1%…

Q: The amount of discount to be recorded if the invoice is paid within the discount period on a…

A: Trade discount is that discount which is being given to all the customers on the list price of the…

Q: Record the following transactions in general journal form. a. Sold merchandise on account to A.…

A: Journal entries are the first step of recording the transactions journalization is the process of…

Q: Use the following to answer the four questions below On January 17, 2022, Seller Company sold to…

A: Payment terms with  4/10 , n/30 it means a discount of 4% will be given if payment is made by buyer…

Q: The company has no beginning inventory . Value Added Tax ( VAT ) is 18 % .  5 March : Purchased on…

A: VAT (Value Added Tax) A kind of tax which is imposed on the value of goods or services at the time…

Q: Hall Inc. made a $30,000 sale on account with the following terms: 2/10, n/30. If the company uses…

A: In case of net method, the sales discount is not recorded only the net amount will be recorded in…

Q: A retail store credited the Sales account for the sales price and the amount of Goods and Services…

A: Introduction: The goods and services tax (GST) is a value-added tax imposed on the majority of goods…

Q: Humble Co. sells merchandise on credit to Wise Co in the amount of P9,600. The invoice is dated on…

A: ''1/ 15'' means the buyer can take 1 % discount advantages,if he pays the dues with in 15 days/

Q: Purchase-related transactions The Stationery Company purchased merchandise on account from a…

A: Perpetual inventory system is an effective inventory system which is used to record inventory in a…

Q: uring the current year, merchandise is sold for $970,000. The cost of the merchandise sold is…

A: The following formulas used as follows under:- Gross Profit =Total Sales - Cost of Goods Sold Gross…

Q: The entry to record a sale on account of merchandise of $300 subject to sales tax of 6% includes a…

A: Journal Entry :— It is an act of recording transactions in books of account when transaction…

Q: Abbey co. Sold merchandise to gomez co. On account, $46000, terms 2/15, net 45. The cost of…

A: Gross profit is the profit earned by the entity after considering the cost of merchandise sold. It…

Q: Merchandise invoiced at $8,900 is sold on terms 1/10, n/30. If the buyer pays within the discount…

A: Income statement is one of the financial statements that shows the profitability, total revenue and…

Q: Using the percentage - of - sales method , the estimated total uncollectible accounts are $6,722.…

A: Accounts receivable is current assets. It is shown in assets side of balance sheet after deducting…

Q: An electronics retailler purchases $25,000 of computers on account for resale. The retailer returns…

A: There is two method of inventory: 1. Periodic inventory method: It is a inventory valuation method…

Q: What is the entry on Kiner's books to record the payment of the invoice within the discount period?

A: In the normal course of business, Business Entities allow credit to their customers on some terms…

Q: Consider the following facts: a. Beginning and ending Accounts Receivable are $25,000 and $27,000,…

A: The cash collection from customers includes the cash collected from the customers during the period.…

Q: Purchase transactions: Rolfes company purchased merchandise on account from Springhill Company for $…

A: Purchase discount is calculated by multiplying purchase less return by discount rate. 2/10, n/30…

Q: During the current year, merchandise is sold for $48000 cash and for $336000 on account. The cost of…

A: Gross profit is the amount of profit earned by the entity after deducting the cost of goods sold…

Q: What is GP?

A: Detailed explanation: Gross profit is the difference between the revenue from both sales on cash and…

Q: Which of the following is an element of the journal entry to account for a purchase of merchandise…

A: The journal entry for sales is recorded after computing the sales tax included in such sales. The…

Q: During the current year, merchandise is sold for $56,600 cash and for $87,400 on account. The cost…

A: Gross profit: Difference between the sales and the cost of goods sold is called gross profit. Gross…

Q: What is the amount of the GP?

A: Explanation of Gross Profit: Gross profit is the amount of money a company makes from its sales…

Q: On October 4, 2006, an Corporation had credit sales transactions of $4,800 from merchandise having…

A: When sales are made to customers, then the sales and cost of goods sold transactions are recorded in…

Q: Sales Tax A sale of merchandise on account for $17,400 is subject to a 7% sales tax. (a)  Should the…

A: Sales tax should be recorded at the time of sale.

Q: Merchandise costing $2,000 is sold for $3,000 on terms 2/10, n/30. If the buyer pays within…

A: Net sales = Sales - Discount Gross profit = Net sales - Cost of goods sold

Q: 1/10, n/30 3/15, n/45

A: Net purchase is the amount of cash paid to supplier for the purchase of inventory during the…

Q: Want answer

A: Gross Profit: Gross profit is the income after production costs have been subtracted from revenue…

Q: A company purchases merchandise for $23,000. The seller also offers credit terms of 2/10, n/30.…

A: Cost of purchase = 23000 Credit Terms = 2/10, n/30

Q: A company receives $444, of which $44 is for sales tax. The journal entry to record the sale would…

A: Journal entry means the entry in prime book with chronological order. Journal entry should have…

Q: Bramble Corp. made a $26200 sale on account with the following terms: 3/10, n/30. If the company…

A: Journal entry: Journal entry is a set of economic events which can be measured in monetary terms.…

Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…

A: Introduction:- Discount term "2/10, n/60" means If the invoice is paid within 10 days of its date, a…