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
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
College Accounting, Chapters 1-27
23rd Edition
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:HEINTZ, James A.
Chapter10: Accounting For Sales And Cash Receipts
Section: Chapter Questions
Problem 2MC: When 25 of merchandise is returned for a credit on account, what is the amount of the credit to...
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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
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