Asked by Helmut Andres Florencia Roldan on Apr 28, 2024
Verified
Carl's Video includes the amount of sales taxes collected directly in the price charged for merchandise, and the total amount is credited to Sales.During January, Sales was credited for $239, 680.The January 31 adjusting entry to account for a 7% state sales tax should be
A)
Sales 15,680\quad 15,68015,680
Sales Taxes Payable 15,680\quad 15,68015,680
B)
Sales Tax Expense 15,680\quad 15,68015,680
Sales Taxes Payable 15,680\quad\quad\quad 15,68015,680
C)
Sales 16,778\quad 16,77816,778
Sales Taxes Payable 16,778\quad\quad 16,77816,778
D)
Sales Tax Expense 16,778 Sales Taxes Payable 16,778\begin{array}{cc}\text { Sales Tax Expense } & 16,778 \\\text { Sales Taxes Payable } && 16,778\end{array} Sales Tax Expense Sales Taxes Payable 16,77816,778
State Sales Tax
A tax imposed by a state on sales of goods and services, collected by the seller and passed on to the state government.
Sales Taxes Payable
A liability account that represents the amount of sales tax collected from customers by a business, which is owed to the government.
Adjusting Entry
A journal entry made in the accounting records at the end of an accounting period to allocate income and expenses to the correct periods.
- Execute accurate journal entries for transactions related to liabilities.
- Become familiar with the procedures and reporting obligations for certain liabilities, such as sales tax and warranty expenditures.
Verified Answer
Learning Objectives
- Execute accurate journal entries for transactions related to liabilities.
- Become familiar with the procedures and reporting obligations for certain liabilities, such as sales tax and warranty expenditures.
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